Yau are asked to prepare a consolidated income statement and a consolidated cash flow statement based...

 

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Yau are asked to prepare a consolidated income statement and a consolidated cash flow statement based on the below transactions that took place during April 2018. You are also asked to give the total group accounts receivable at the end of the month. 1. Energy Limited spent $500.00 in startup costs for a plan which it is building which is not yet generating revenues, and 7,000.00 an acquisition of property, plant and equipment. The company had to borrow this $7,500.00 from Quick Finance Limited to do so. This will be settled at an undermined time which is not in the current fiscal year. 2. Energy Limited's 2 majority shareholders invested $10,000.00 cash each into the company. 1 Quick Finance Limited had sales of $500,000.00 (revenue booked on loans issued). All of that were receivables which has not yet been paid by month end. 4. Quick Finance Limited had collections on receivables from previaus months of Sa00,000.00 5. Quick Finance Limited lent $500,000.00 (principal) in loans, all of which are receivable at month end 6. By the end of April 2018, S60,000.00 of Quick Finance Limited's receivables needs to be written off. The company uses the allowance method to account for doubtful accounts. 7. Innovative Solutions Limited has sales of $12,000.00 during the month, none of which were a receivable. a Money Transfer Limited earned $50,00.00 in commissions during the manth, nane of which was receivable. 9. Prudential Management Firm does not charge management fees to these entities but instead has an intercompany transaction coming in monthly of $10,000.00 from Quick Finance Limited and s20,000.00 from Innovative Solutions Limited. This will be settled at an undermined time which is not in the current fiscal year. 10.Prudential Management Firm has a loang term payable to XYZ Trust Limited which it paid $1,500.00 toward during the month, $1,200.00 being principal and $300.00 being interest. This was paid via cash. 11.Share capital for the group is $340,000.00 as per company docs 12.Apart from any other that was mentioned, the group also had S150,000.00 in expenses, $50,000.00 of which was done on account, the remainder in cash 13. The group uses the accrual method of accounting 14.Below was the positions of the group at the end of March 2018: Prudential Management Firm Group Balance Sheet for Month Ending March 31, 2018 31-Mar-18 ASSETS Current Assets Cash and Bank 1,044,200 Accounts And Loans Receivable 5,720,000 Provision for Bad Debt -1,000,000 Prepaid Expenses 3,000 Startup Costs 40,000 Total Current Assets 5,807,200 Long Term Assets Investment in ABC Limited 170,000 Total Long Term Assets 170,000 Fixed Assets Property Plant and Equipment 550,800 Furniture and Equipment 523,000 Total Fixed Assets 1,073,800 Total Assets 7,051,000 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payables 35,000 Total Current Liabilities 35,000 Loan Term Liabilities Note Payable to XYZ Trust Limited Note Payable to ATE Trust Limited 58,000 60,000 Total Long Term Liabilities 118,000 Total Liabilities 153,000 Equity Share Capital Surplus Paid In Capital 340,000 158,000 Retained Earnings 6,400,000 Total Equity 6,898,000 TOTAL EQUITY AND LIABILITIES 7,051,000 Yau are asked to prepare a consolidated income statement and a consolidated cash flow statement based on the below transactions that took place during April 2018. You are also asked to give the total group accounts receivable at the end of the month. 1. Energy Limited spent $500.00 in startup costs for a plan which it is building which is not yet generating revenues, and 7,000.00 an acquisition of property, plant and equipment. The company had to borrow this $7,500.00 from Quick Finance Limited to do so. This will be settled at an undermined time which is not in the current fiscal year. 2. Energy Limited's 2 majority shareholders invested $10,000.00 cash each into the company. 1 Quick Finance Limited had sales of $500,000.00 (revenue booked on loans issued). All of that were receivables which has not yet been paid by month end. 4. Quick Finance Limited had collections on receivables from previaus months of Sa00,000.00 5. Quick Finance Limited lent $500,000.00 (principal) in loans, all of which are receivable at month end 6. By the end of April 2018, S60,000.00 of Quick Finance Limited's receivables needs to be written off. The company uses the allowance method to account for doubtful accounts. 7. Innovative Solutions Limited has sales of $12,000.00 during the month, none of which were a receivable. a Money Transfer Limited earned $50,00.00 in commissions during the manth, nane of which was receivable. 9. Prudential Management Firm does not charge management fees to these entities but instead has an intercompany transaction coming in monthly of $10,000.00 from Quick Finance Limited and s20,000.00 from Innovative Solutions Limited. This will be settled at an undermined time which is not in the current fiscal year. 10.Prudential Management Firm has a loang term payable to XYZ Trust Limited which it paid $1,500.00 toward during the month, $1,200.00 being principal and $300.00 being interest. This was paid via cash. 11.Share capital for the group is $340,000.00 as per company docs 12.Apart from any other that was mentioned, the group also had S150,000.00 in expenses, $50,000.00 of which was done on account, the remainder in cash 13. The group uses the accrual method of accounting 14.Below was the positions of the group at the end of March 2018: Prudential Management Firm Group Balance Sheet for Month Ending March 31, 2018 31-Mar-18 ASSETS Current Assets Cash and Bank 1,044,200 Accounts And Loans Receivable 5,720,000 Provision for Bad Debt -1,000,000 Prepaid Expenses 3,000 Startup Costs 40,000 Total Current Assets 5,807,200 Long Term Assets Investment in ABC Limited 170,000 Total Long Term Assets 170,000 Fixed Assets Property Plant and Equipment 550,800 Furniture and Equipment 523,000 Total Fixed Assets 1,073,800 Total Assets 7,051,000 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payables 35,000 Total Current Liabilities 35,000 Loan Term Liabilities Note Payable to XYZ Trust Limited Note Payable to ATE Trust Limited 58,000 60,000 Total Long Term Liabilities 118,000 Total Liabilities 153,000 Equity Share Capital Surplus Paid In Capital 340,000 158,000 Retained Earnings 6,400,000 Total Equity 6,898,000 TOTAL EQUITY AND LIABILITIES 7,051,000

Answer rating: 100% (QA)

160 161 Date Account Number Account Titles Explanation Debit Credit 162 31Mar 513 Insurance expense ... View the full answer