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This is a previous exam that I'm not able to solve. Your help would be much appreciated! The following information to prepare the financial balance
This is a previous exam that I'm not able to solve. Your help would be much appreciated!
The following information to prepare the financial balance sheet for the company as at 31/12/2012: 1- The value of " goodwill " account: increased by a rate of 25% as a result of company development activities. 2- "Research and development expenses" account: include a charge of LBP 8,000,000 for a project not suitable for sale any more. 3- "Lands" account: value decreases by a rate of 10% due to temporary work beside the company building. 4- The real value of "Industrial equipment and tools" account: must be less than 20% of its net book value due to extra usage. 5- "Transport equipment" account: there is an equipment purchased on 1/9/2010 amounted to LBP 20,000,000 and depreciated at a rate of 25% but the rate that reflect the economic situation is 12%. 6- " Advance payment-tangible fixed assets" account : that shown in the balance sheet related to a fixed assets purchased; the company received and register the invoice without reconciling the advance payment account. 7- The " Stock and in progress" account: include 25% strategic stock. 8- " Advance paid to personnel" account: include an amount of LBP 4,000,000 given to one of the employees to purchase a house and this amount will be settled in 2015. 9- "Debtors non-operating" account: include an amount of LBP 2,000,000 to one of the clients. 10 -" Security placement " account: are shares bought from one of anonymous company who's heavily trading in the stock market. 11 - " Charges recorded in advance" account: include LBP 4,000,000 interest on loan obtained by the company. 12- " Loan from financial institution" account: include an amount of LBP 4,000,000 due on march 2013. 13- " Revenue recorded in advance " account: considered operating. RequiredStep by Step Solution
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