The following comparative statements of financial position and income statement are for the business of Leone...
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The following comparative statements of financial position and income statement are for the business of Leone Ltd: ASSETS Cash at bank LEONE LTD Comparative Statements of Financial Position as at 30 June 2020 Accounts receivable Interest receivable Inventory Prepaid expenses 10 year loan to Boot Ltd Plant and machinery(net) LIABILITIES AND EQUITY Accounts payable Salaries payable Expenses payable 10 year debentures Share capital Retained earnings 22 000 93 000 3 000 135 000 8 000 11 000 453 000 $725 000 $ 91 000 4 000 1 000 160 000 359 000 110 000 $725 000 2019 42 000 80 000 1.000 138 000 7 000 0 219 000 $487.000 $ 57 000 6.000 3 000 77 000 258 000 86 000 $487 000 LEONE LTD Income Statement for year ended 30 June 2020 INCOME Sales revenue Interest revenue Gain on sale of machinery EXPENSES Cost of sales Salary expense Depreciation - plant and machinery Other expenses Interest expense Income tax expense PROFIT $150 000 56 000 18 000 17 000 16 000 15 000 $284 000 21 000 8 000 313 000 (iii) A cash dividend has been paid to shareholders. Required: 272 000 $ 41.000 Additional information (i) New machinery costing $306 000 was purchased for cash during the year. (ii) Old machinery with a net value of $54,000 was sold for cash. Prepare the statement of cash flows for the year ended 30 June 2020, using the t-account method. All workings must be shown. (20 marks) The following comparative statements of financial position and income statement are for the business of Leone Ltd: ASSETS Cash at bank LEONE LTD Comparative Statements of Financial Position as at 30 June 2020 Accounts receivable Interest receivable Inventory Prepaid expenses 10 year loan to Boot Ltd Plant and machinery(net) LIABILITIES AND EQUITY Accounts payable Salaries payable Expenses payable 10 year debentures Share capital Retained earnings 22 000 93 000 3 000 135 000 8 000 11 000 453 000 $725 000 $ 91 000 4 000 1 000 160 000 359 000 110 000 $725 000 2019 42 000 80 000 1.000 138 000 7 000 0 219 000 $487.000 $ 57 000 6.000 3 000 77 000 258 000 86 000 $487 000 LEONE LTD Income Statement for year ended 30 June 2020 INCOME Sales revenue Interest revenue Gain on sale of machinery EXPENSES Cost of sales Salary expense Depreciation - plant and machinery Other expenses Interest expense Income tax expense PROFIT $150 000 56 000 18 000 17 000 16 000 15 000 $284 000 21 000 8 000 313 000 (iii) A cash dividend has been paid to shareholders. Required: 272 000 $ 41.000 Additional information (i) New machinery costing $306 000 was purchased for cash during the year. (ii) Old machinery with a net value of $54,000 was sold for cash. Prepare the statement of cash flows for the year ended 30 June 2020, using the t-account method. All workings must be shown. (20 marks)
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CASHFLOW FOR THE YEAR ENDED 30 JUNE 2020 OPERATING ACTIVITIES Net Income 4100000 ADD Tax paid 1500000 Net Income before tax 5600000 Adjustments to rec... View the full answer
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
Posted Date:
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