Study the scenario and complete the questions that follow: Company Information A certain company has the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Study the scenario and complete the questions that follow: Company Information A certain company has the following information available for the year-ended 28 February 2021: Account Balance Cost: Machinery and equipment Cost: Office equipment and furniture and fittings Accumulated depreciation: Machinery and equipment Accumulated depreciation: Office equipment and furniture and fittings R100 000 R40 000 R80 000 R30 000 R20 000 R80 000 Receivables Payables (Two payables charged interest on overdue accounts: Payable 1 charged interest of 7.5% on an overdue account of R10,000 Payable 2 charged interest of 5% on an overdue account of R10,000) Long-term loan R800 000 The directors decided to obtain a long-term loan on 1 March 2020 to finance new machinery and equipment. The loan was taken out at 18% per annum. Interest is paid annually. No interest has been recorded yet. 10% Mortgage bond R1.500 000 The mortgage bond was secured on 1 May 2020. Interest is payable monthly. No interest has been recorded yet. Sales R1 000 000 Purchases R400 000 Advertising and marketing ? Advertising and marketing must be done to the value of 15% of sales revenue. Credit losses R18 000 Computer expenses R15 000 Distribution costs Distribution costs are calculated at 10% on the value of advertising and marketing costs. Electricity and water Rent paid Salaries and wages R60 000 R110 000 R440 000 R40 000 Telephone expenses Surce: De Villiers, C. 2021. Required 5.1 Calculate the 'distribution costs' section of the Statement of Profit or Loss and Other Comprehensive Income. Show all calculations. (6 Marks) 5.2 Calculate the finance costs' section of the Statement of Profit or Loss and Other Comprehensive Income. Show all calculations. (7 Marks) Study the scenario and complete the questions that follow: Company Information A certain company has the following information available for the year-ended 28 February 2021: Account Balance Cost: Machinery and equipment Cost: Office equipment and furniture and fittings Accumulated depreciation: Machinery and equipment Accumulated depreciation: Office equipment and furniture and fittings R100 000 R40 000 R80 000 R30 000 R20 000 R80 000 Receivables Payables (Two payables charged interest on overdue accounts: Payable 1 charged interest of 7.5% on an overdue account of R10,000 Payable 2 charged interest of 5% on an overdue account of R10,000) Long-term loan R800 000 The directors decided to obtain a long-term loan on 1 March 2020 to finance new machinery and equipment. The loan was taken out at 18% per annum. Interest is paid annually. No interest has been recorded yet. 10% Mortgage bond R1.500 000 The mortgage bond was secured on 1 May 2020. Interest is payable monthly. No interest has been recorded yet. Sales R1 000 000 Purchases R400 000 Advertising and marketing ? Advertising and marketing must be done to the value of 15% of sales revenue. Credit losses R18 000 Computer expenses R15 000 Distribution costs Distribution costs are calculated at 10% on the value of advertising and marketing costs. Electricity and water Rent paid Salaries and wages R60 000 R110 000 R440 000 R40 000 Telephone expenses Surce: De Villiers, C. 2021. Required 5.1 Calculate the 'distribution costs' section of the Statement of Profit or Loss and Other Comprehensive Income. Show all calculations. (6 Marks) 5.2 Calculate the finance costs' section of the Statement of Profit or Loss and Other Comprehensive Income. Show all calculations. (7 Marks)
Expert Answer:
Posted Date:
Students also viewed these general management questions
-
The following information was available for the year ended December 31, 2013 Required: a. Calculate the inventory turnover for 2013. b. Calculate the number of days sales in inventory for 2013, using...
-
The following information is available for the year ended 31 March 20X6 (values in $m): Present value of scheme liabilities at 1 April 20X5 $1,007; Fair value of plan assets at 1 April 20X5 $844;...
-
A certain coal has the following analysis on a mass basis: 82 percent C, 5 percent H2O, 2 percent H2, 1 percent O2, and 10 percent ash. The coal is burned with 50 percent excess air. Determine the...
-
Listed below is the income statement for Tom and Sue Travels, Incorporated. TOM AND SUE TRAVELS, INCORPORATED Income Statement for Year End ( in millions of dollars ) Net sales $ 1 9 . 6 0 0 Less:...
-
Why might it be difficult to read the religion clauses literally?
-
Shad Corporation purchases a 60-day negotiable CD with a $5 million denomination from Bait Bank and Trust, bearing a 2.95 percent annual yield. How much in interest will the bank have to pay when...
-
What measures of location are commonly computed for frequencies?
-
You have developed the following pro forma income statement for your corporation. It represents the most recent years operations, which ended yesterday. Sales ..............$45,750,000 Variable costs...
-
SY&I is a partnership owned by T . Shitang, D . Yamamoto, and J . Ishikawa, who share profits and losses in the ratio of 2 : 3 : 5 respectively. The adjusted trial balance of the partnership ( in...
-
In this mini-case, you will complete the test of details on accounts receivable for the 2019 audit of EarthWear Clothiers, Inc. The principal test of detail involves sending "confirmations" or...
-
Find and article or claim that is going around social media or the news. I want you to copy it or link it into the discussion post. Once you have done that explain why you think it is fake news and...
-
Find the limit (if it exists) as \(n ightarrow \infty\) for each of the sequences in Problems 43-56. \(\lim _{n ightarrow \infty} \frac{2 n^{4}+5 n^{2}-6}{3 n+8}\)
-
Find the derivative, \(f^{\prime}(x)\), of each of the functions in Problems 37-42 by using the derivative definition or the derivative of the exponential function. \(y=e^{-6 x} \)
-
Find an equation of the line tangent to the curves in Problems 43-46 at the given point. \(y=4-5 x\) at \(x=-2 \)
-
What is the rate of change of profit in Problem 49 at x=20? Data from problem 49 Suppose the profit, \(P\), measured in thousands of dollars, for a manufacturer is a function of the number of units...
-
Find the limit (if it exists) as \(n ightarrow \infty\) for each of the sequences in Problems 43-56. \(\lim _{n ightarrow \infty} \frac{12 n^{5}+7 n^{4}-3 n^{2}+2 n}{n^{5}+8 n^{3}+14}\)
-
3) Calculate the missing amounts: (Note: Year 1 End. R/E will be year 2 Beg. R/E) Beg. R/E Balance Year 123 2 3 b. d. $0 Net income C. 3,500 Dividends $250 300 800 End. R/E Balance a. e. 2,150
-
United Business Forms capital structure is as follows: Debt ............................................ 35% Preferred stock ........................... 15 Common equity .......................... 50...
-
Kaplan gives several examples of the need to clearly explain the cafs purpose and goals. Identify specific assumptions or misconceptions that their audience may have. Why is managing or countering...
-
What organizations are you personally in contact with that rely on grants for all or part of their budget? Are you ever the in a position to make requests for funding? Do you ever receive those...
-
What incentives do digital tools provide to circulate more rather than fewer paper documents? What incentives do companies have to reduce their use of paper? What tradeoffs or conflicts between these...
Study smarter with the SolutionInn App