Financial Accounting

ACCT 201
Assignment 2
Instructions for the students:
The due date for this assignment is 12th 2015 March. Assignments submitted
after due date will not be marked.
Students are required to submit the assignment on the black board and not on
instructors E-mail address.
Students who cheat or copy from other students will receive a grade of
zero.

Q1. Given the following account information for AAA Corporation, prepare a statement of
financial position in report form for the company as of December 31, 2014. All accounts have
normal balances.
Equipment

$ 40,000

Interest Expense

2,400

Interest Payable

600

Retained Earnings
Dividends

?
50,400

Land

137,320

Inventory

102,000

Bonds Payable

78,000

Notes Payable (due in 6 months)

14,400

Share capitalordinary

60,000

Accumulated Depreciation - Eq.

10,000

Prepaid Advertising

5,000

Revenue

331,400

Buildings

80,400

Supplies

1,860

Taxes Payable

3,000

Utilities Expense

1,320

Advertising Expense

1,560

Salary Expense
Salaries Payable

53,040
900

Accumulated Depr. - Bld.

15,000

Cash

30,000

Depreciation Expense,
Building & Equipment

8,000

Q2. Selected financial statement information and additional data for SEU Co. is presented
below. Prepare a statement of cash flows for the year ending December 31, 2012
December 31
2011

2012

Land

$ 58,800

Equipment ......................................

504,000

789,600

Inventory.........................................

168,000

201,600

Accounts receivable (net) ..............

84,000

151,200

Cash .................................................

42,000

63,000

TOTAL .............................. $856,800

$1,226,400

Share capitalordinary .................. $420,000

$ 21,000

487,200

Retained earnings ..........................

67,200

205,800

Notes payable - Long-term ............

168,000

302,400

Notes payable - Short-term ...........

67,200

29,400

Accounts payable ...........................

50,400

86,000

Accumulated depreciation.............

84,000

115,600

TOTAL .............................. $856,800

$1,226,400

Additional data for 2012:

1. Net income was $235,200.
2. Depreciation was $31,600.
3. Land was sold at its original cost.
4. Dividends of $96,600 were paid.
5. Equipment was purchased for $84,000 cash.
6. A long-term note for $201,600 was used to pay for an equipment purchase.
7. Share capitalordinary was issued to pay a $67,200 long-term note payable.

AAA CORPORATION
STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2014
Assets
Non-Current assets:
Long term investments
Property Plant and equipment
Land
Building
(-) Accumulated Depreciation

137,320
80,400
-15,000
65,400

Equipment
(-) Accumulated Depreciation

40,000
-10,000
30,000
232,720

Intangible assets
Total Non-Current assets
Current assets
Prepaid Advertising
Inventories
Supplies
Cash
Total Current assets
Total assets
Equity and Liabilities
Owner's Equity
Controlling interest
Share capital - ordinary
Retained earnings
Total Equity
Non-Current Liabilities
Bond Payable

232,720
5,000
102,000
1,860
30,000
138,860
371,580

60,000
215,580
275,580
78,000
78,000

Current Liabilities
Interest Payable
Note Payable
Tax payable

600
14,400
3,000
18,000

Total Equity and Liabilities

371,580

SEU Co.
Statement of Cash flow
For the year ended December 31,2012
Cash Flow from Operating
Net Income
Depreciation Expenses
Increase in Inventories
Increase in receivable
Decrease in Notes Payable short term
Increase in Accounts Payable
Net Cash Provided by Operating
Cash Flow from Investing
Purchase of Equipment
Sale of Land
Net Cash Used by Operating
Cash Flow from Financing
Cash Dividends
Net Cash Provided by Operating
(=) Net Increase In Cash
Cash at Beginning
Cash at End
Non Cash Investing and Financing
Ordinary Shares issued to Pay Long term Note
Purchase of Equipment by Note Payable

235,200
31,600
-33,600
-67,200
-37,800
35,600
163,800

-84,000
37,800
-46,200

-96,600
-96,600
21,000
42,000
63,000

67,200
201,600