Use the following selected data about Comfort Bhd. and prepare the operating cash flows of the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Use the following selected data about Comfort Bhd. and prepare the operating cash flows of the company for the year 2020. Balances Sheet Data Account receivables Equipment Bonds payable Salaries payable Prepaid expenses Inventories Account payable Accumulated depreciation Common stock Retained Earning Income Statement Data Net sales Cost of goods sold Operating expenses (excluding depreciation expense) Net Income Gain on sale of equipment (included in net income above) Amortization of bond discount (included in net income above) 1 April 2019 4 June 2019 1 July 2019 2 January 2020 2020 RM Revenue Recognition Reason (Yes/No) 34,000 60,000 50,000 2,000 5,000 29,000 30,000 10,000 150,000 38,000 2019 RM 42,000 40,000 100,000 1,000 3,000 25,000 35,000 16,000 100,000 20,000 2020 390,000 300,000 64,000 10,000 b) On 1 April 2019, K plus Berhad, a newly incorporated company, was granted a concession by the Malaysian Government. Under this concession, K plus Berhad would design, build and operate a tolled motorway for 30 years, after which it will hand over the motorway to the government for RM1. K plus Berhad secured financing of RM200 million for the project on 4 June 2019, at which time it appointed professional consultants for the design and survey component of the project. The design work commenced on 1 July 2019 and construction began on 2 January 2020. Required: For each of the four dates referred to in the scenario, state (with reasons), whether that is (/is not) the date on which K plus Berhad recognises the revenue income Date 2,000 1,500 (15 marks) Use the following selected data about Comfort Bhd. and prepare the operating cash flows of the company for the year 2020. Balances Sheet Data Account receivables Equipment Bonds payable Salaries payable Prepaid expenses Inventories Account payable Accumulated depreciation Common stock Retained Earning Income Statement Data Net sales Cost of goods sold Operating expenses (excluding depreciation expense) Net Income Gain on sale of equipment (included in net income above) Amortization of bond discount (included in net income above) 1 April 2019 4 June 2019 1 July 2019 2 January 2020 2020 RM Revenue Recognition Reason (Yes/No) 34,000 60,000 50,000 2,000 5,000 29,000 30,000 10,000 150,000 38,000 2019 RM 42,000 40,000 100,000 1,000 3,000 25,000 35,000 16,000 100,000 20,000 2020 390,000 300,000 64,000 10,000 b) On 1 April 2019, K plus Berhad, a newly incorporated company, was granted a concession by the Malaysian Government. Under this concession, K plus Berhad would design, build and operate a tolled motorway for 30 years, after which it will hand over the motorway to the government for RM1. K plus Berhad secured financing of RM200 million for the project on 4 June 2019, at which time it appointed professional consultants for the design and survey component of the project. The design work commenced on 1 July 2019 and construction began on 2 January 2020. Required: For each of the four dates referred to in the scenario, state (with reasons), whether that is (/is not) the date on which K plus Berhad recognises the revenue income Date 2,000 1,500 (15 marks)
Expert Answer:
Answer rating: 100% (QA)
To prepare the operating cash flows for Comfort Bhd in the year 2020 we need to calculate the net ca... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
Use the following selected data and additional information from the records of XYZ Corp. to answer the questions that follow Balance Sheet Data Accounts receivable Inventories Accounts payable...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The comparative balance sheets for 2013 and 2012 and the income statement for 2013 are given below for Arduous Company. Additional information from Arduouss accounting records is provided also....
-
Figure shows an overhead view of a ring that can rotate about its center like a merry-go-round. Its outer radius R2 is 0.800 m, its inner radius R1 is R2/2.00, its mass M is 8.00 kg, and the mass of...
-
Harmsen Maintenance Corporation was organized in early 2012 with 60,000 shares of no-par common stock authorized. During 2012, the following transactions occurred: a. Issued 31,000 shares of stock at...
-
Citron Company is a U.S.-based citrus grower. On October 1, 2019, the company entered into a contract to ship 25,000 boxes of grapefruit on January 28 to Japan. Payment of 50,100,000 yen is to be...
-
Explain the value of finance and budgeting systems .
-
Financial StatementsPrivate University. The following is the pre-closing trial balance for Horton University as of June 30, 2011. Additional information related to net assets and the statement of...
-
You have a small shed with walls of plain carbon steel with atotal surface area of 20 m^2. The walls are 0.4 mm thick and arenot painted. You want to add air conditioning for summer use tomaintain an...
-
Below are shown three different crystallographic planes for a unit cell of some hypothetical metal. The circles represent atoms: (a) To what crystal system does the unit cell belong? (b) What would...
-
By the transfer of electrons, illustrate the formation of bond in magnesium chloride and identify the ions present in this compound. (ii) Ionic compounds are solids. Give reasons. (iii) With the help...
-
A \(205 \mathrm{~mm} \times 245 \mathrm{~mm}\) sheet of wetted fabric is hung up to dry on a warm, sunny day. The still air is at a temperature of \(30^{\circ} \mathrm{C}\) and relative humidity of...
-
Repeat Exercise 6 under the assumption that instead of a fall in demand for foreign exchange, there is an increase in supply. data from exercise 6 Credit entries in a countrys balance of payments...
-
According to experimental results for parallel airflow over a uniform temperature, heated vertical plate, the effect of free convection on the heat transfer convection coefficient will be \(5 \%\)...
-
Water at \(35^{\circ} \mathrm{C}\) is pumped through a horizontal, \(200-\mathrm{m}\)-long, \(30-\mathrm{mm}\)-diameter tube at \(0.25 \mathrm{~kg} / \mathrm{s}\). Over time, a 2-mm-thick layer of...
-
Fully developed conditions are known to exist for water flowing through a \(50-\mathrm{mm}\)-diameter tube at \(0.02 \mathrm{~kg} / \mathrm{s}\) and \(27^{\circ} \mathrm{C}\). What is the maximum...
-
Some of the developments that have occurred in the risk management field relates to the emergence of various standards and frameworks that have been spearheaded by different stakeholders. Based on...
-
Suppose that a flow network G = (V, E) violates the assumption that the network contains a path s t for all vertices V. Let u be a vertex for which there is no path s u t. Show that there must...
-
Define a compensating balance. How are compensating balances reported in financial statements?
-
The following information is available for the Johnson Corporation: Beginning inventory.........................................................$ 25,000 Inventory purchases (on...
-
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. 1. On June 30, 2021, the Johnstone Company purchased equipment from...
-
A container of an organic liquid a $25^{\circ} \mathrm{C}$ has a mass of $1100 \mathrm{~kg}$ and a volume of $0.94 \mathrm{~m}^{3}$. Find the liquid's weight, its density, and its specific gravity.
-
A vertical, cylindrical tank with a diameter of $10 \mathrm{~m}$ and a depth of $4 \mathrm{~m}$ is filled to the top with water at $25^{\circ} \mathrm{C}$. If the water is heated to $60^{\circ}...
-
The system in Figure P1.6 is at $20^{\circ} \mathrm{C}$. If atmospheric pressure is $101.3 \mathrm{kPa}$ and the absolute pressure at the bottom of the tank is $264.1 \mathrm{kPa}$, what is the...
Study smarter with the SolutionInn App