Group of Intermediate financial accounting questions

FINANCIAL ACCOUNTING

ACCT 201

ASSIGNMENT 2

 

Q1. Explain the statement of financial position and its uses and limitations.(2 marks)

 

Q2. X Company has the following receivables classified into individually significant and all other receivables.

Individually significant

P Company

Q Company

R Company

S Company

All other receivables

 

$ 65,000

95,000

75,000

35,000

 

 

 

 

270,000

425,000

Total receivables. 695,000

 

X company determines that P’s receivable is impaired by $20,000, and S’s receivable is totally impaired. Both Q’s and R’s receivables are not considered impaired. X company also determines that a composite rate of 2% is appropriate to measure impairment on all other receivables.

Required: Calculate the total impairment on accounts Receivable. (2 marks)

 

Q3. Calculate cash flow from operating activities from the following data:( 3 marks)

  • Profits made during the year $ 145,000 after considering the following items :

Amortization of Goodwill                                                                    3,000

Depreciation of Fixed Assets                                                                           17,000

Loss on Sale of Fixed Assets                                                                             2,500

Transfer to General Reserve                                                                             15,000

 

 

The following is the position of current assets and current liabilities:

Particulars31.3.0731.3.08
Creditors

Debtors

Prepaid Expenses

Bills Payable

12,000

16,200

250

5,000

8,200

12,000

750

7,000

 

 

 

 

 

 

 

Q4. CHO Company was formed on December 1, 2009. The following information is available from Jones’s inventory record for Product X.

Units          Unit Cost

January 1, 2010 (beginning inventory)                                      1,600             $18.00

Purchases:

January 5, 2010                                                                    2,600             $20.00

January 25, 2010                                                                  2,400             $21.00

February 16, 2010                                                                1,000             $22.00

March 15, 2010                                                                    1,800             $23.00

 

A physical inventory on March 31, 2010, shows 2,500 units on hand.

 

Prepare schedules to compute the ending inventory at March 31, 2010, using Weighted-average. ( 3 marks)

 

 

 

 

 

 

 

 

Last Updated on February 15, 2019