Revenue recognition

A company sells $20,000 of green widgets to a customer in March, which pays the invoice in April. When does the seller recognize the sale

a) under the cash basis and b) under the accrual basis?

Expense recognition

A company buys $500 of office supplies in May, which it pays for in June. When does the buyer recognize the sale

a) under the cash basis and b) under the accrual basis?

Cash flow accounting

A summarised comparative statement of financial position of Jonas Hector plc is presented below: 30 June 2018 30 June 2017 CU CU Cash Accounts receivable Inventory Land Plant Accumulated depreciation 10,000 60,000 58,000 107,000 280,000 (30,000) 485,000 84,000 85,000 66,000 115,000 320,000 (51,000) 619,000 Accounts payable Borrowings Interest payable Share capital Retained earnings Income Tax payable Dividends payable 68,000 160,000 1,000 200,000 35,000 11,000 10,000 485,000 75,000 200,000 4,000 240,000 82,000 7,000 11,000 619,000 Additional information: (a) There were no disposals of land or plant during the year, (b) A CU 30,000 borrowing was settled through the issue of ordinary shares. There were no other repayments of borrowings, (c) The Jonas Hector plc repaid payables of CU 4,000 during the year. (d) Profit after tax for the year was CU 150,000, interest expense was CU 17,000, and income tax expense was CU 41,000. There were no items of other comprehensive income. Required: a) Present the cash flow from operating activities using the indirect method in accordance with IAS 7 for the year ended 30 June 2018 (11 points). b) Present the cash flow from financing activities in accordance with IAS 7 for the year ended 30 June 2018 (6 points) c) Present the cash flow from investing activities in accordance with IAS 7 for the year ended 30 June 2018 (3 points)