Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following table shows the statement of financial position for Jims Shams Company as a June 30, 2020. Assets $ Cash and balances with banks
The following table shows the statement of financial position for Jims Shams Company as a June 30, 2020. Assets $ Cash and balances with banks and agents 155,000 Deposits and placements with financial institutions 2,010,500 Investments: Held for trading (Note 1) 1.420,500 1 Investment: Held to maturity 490,200 Investments: Available for sale 250,500 Stocks 3,800,300 Tax recoverable 9,200 127,300 Bills receivable (Note 2) 350,000 Fixed assets 8,613,500 Liabilities Accounts payable Accruals Bills payable 7,350,000 50.500 65.500 Shareholders' funds Share capital 500,000 Reserves 647,500 8,613,500 1. Additional Information at the end of the year: 1. A total of $400,000 value of held-for-trading securities of M Berhad has been treated as a long-term investment where the company has no intention to liquidate and the company intends to become the major shareholder of M Berhad. 2. Ten percent (10%) of the bills receivable is nonrecoverable and must be written off. This provision has not been provided in the preceding statement of financial position. The following table shows the statement of financial position for Jims Shams Company as a June 30, 2020. Assets $ Cash and balances with banks and agents 155,000 Deposits and placements with financial institutions 2,010,500 Investments: Held for trading (Note 1) 1.420,500 1 Investment: Held to maturity 490,200 Investments: Available for sale 250,500 Stocks 3,800,300 Tax recoverable 9,200 127,300 Bills receivable (Note 2) 350,000 Fixed assets 8,613,500 Liabilities Accounts payable Accruals Bills payable 7,350,000 50.500 65.500 Shareholders' funds Share capital 500,000 Reserves 647,500 8,613,500 1. Additional Information at the end of the year: 1. A total of $400,000 value of held-for-trading securities of M Berhad has been treated as a long-term investment where the company has no intention to liquidate and the company intends to become the major shareholder of M Berhad. 2. Ten percent (10%) of the bills receivable is nonrecoverable and must be written off. This provision has not been provided in the preceding statement of financial position
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started