Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

South Africa Corporation has been in the business of delivering small packages for local companies within the City of Tshwane, since the year 2000. The

South Africa Corporation has been in the business of delivering small packages for local companies within the City of Tshwane, since the year 2000. The following information concerning financial activities during 2022 is available as at 31 December 2022: Delivery revenue R380,000 Salary and wage expense R82,000 Dividends declared and paid 85,000 Rent expense 43,000 Buildings 140,000 Land 60,000 Accounts Receivables 40,000 Accounts Payable 30,000 Capital stock 105,000 Retained earnings, Water, gas, and 1 January 2022 42,000 Electricity 28,000 Notes payable 34,000 Cash 56,000 Income tax expense 18,000

1. Prepare an income statement for the year ended 31 December 2022. (9)

2. If you were a bank loan officer and South Africa Corporation wanted to borrow R100,000 from your bank, would you lend the money? Explain.

3. Calculate retained earnings at 31 December 2022.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

1 Income Statement for the year ended 31 December 2022 Delivery revenue R380000 Salary and wage expe... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial management theory and practice

Authors: Eugene F. Brigham and Michael C. Ehrhardt

12th Edition

978-0030243998, 30243998, 324422695, 978-0324422696

More Books

Students also viewed these Finance questions

Question

Find each product. (8 m)( + m)

Answered: 1 week ago

Question

Were the participants sensitized by taking a pretest?

Answered: 1 week ago

Question

What is a process and process table?

Answered: 1 week ago

Question

What is Industrial Economics and Theory of Firm?

Answered: 1 week ago

Question

What is the meaning and definition of E-Business?

Answered: 1 week ago