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transaction analysis Event Event 1 Transaction The company repays $39367 of its borrowings. This amount includes $5135 of interest. The remaining borrowings are to be
transaction analysis
Event Event 1 Transaction The company repays $39367 of its borrowings. This amount includes $5135 of interest. The remaining borrowings are to be repaid evenly over the following ten years. Event 2 The accountant determines that depreciation should be recorded at $7774. The accountant estimates that 20 percent of the depreciation is related to selling activities, with the remaining related to administration. Event 3 The company declares and pays a dividend of $16695 to its shareholders. Event 4 The company uses up the remainder of its previous prepaid insurance contract in the first six months of the fiscal financial year. The company then commences a new contract costing $14400 in total, all paid upfront, for the following 12 months including the last six months of the financial year. The insurance related to administration. The accountant informs you that other current assets related to prepaid accounts in the previous financial year. Event 5 The company purchased $399800 of inventory from its suppliers. The inventory was purchased on credit. Event 6 The company receives a dividend from one of its investments of $5734. Event 7 The company makes payments to inventory suppliers of $378689. Event 8 The company purchased an additional $11000 of production equipment. Half was paid in cash, with the remaining on credit. The accountant determines that the credit amount should be allocated to other current liabilities. Event 9 The company collects $555766 from its trade receivables during the financial year. Event 10 The company pays rent of $5000 per month on a 12-month lease. The rent related to administrative offices. Event 11 The company makes total sales of normal goods and services of $607000. Of this amount $34800 was received in cash at the time of the sale. The value of goods sold in these transactions was $399800. Event 12 The company issued 3405 shares to new investors. These shares were issued at an average price of $20 per share. Event 13 The company paid all corporate income tax owing from the previous period. In addition, the company incurs a further $31988 in corporate income tax that it will pay next financial year. Event 14 The company paid all wages owing from the previous period, which made up the total opening balance of other current liabilities. In addition, the company paid wages costs of $19000. These wages relate 40 percent to administrative expenses, and the remainder to selling expensesStep by Step Solution
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