Essay about Golden Limited's Balance Sheet

1878 Words Oct 23rd, 2013 8 Pages
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Suggested time: 45 minutes
Maximum score: 120 points

Ending Inventory (December 31, 2007) $26,000

The following transactions took place during 2007:
The trial balance of Golden Limited as at 1 January 2007 is shown below:
Accoun

A¢ ount

No

110

110
110

ca
-Be d Investments

ccounts Receivable

1108
110

1110
200
01
2202
--2203

3300
3301
-4400

401
5500

501
5502
5503 i504 5O5
5O6

$

$

[nt :re---st Receivable
-] ÿntory *

ding**

Payments: Accounts Payable $15,000; Notes Payable $27,000; Income Taxes
Payable $8,000; Operating Expenses $42,000

,

30,000

4.

900

Credit sales $104,000
Inventory purchased $36,000
$22,000 purchased on credit (assume
…show more content…
The increase in value was included in the income statement.
(c)

The following elements of construction costs have been capitalized as a

fixed asset:
1) Costs of material, installation and assembly,
2) Costs of employee benefits,
3) Initial delivery and handling costs,
4) Professional fees
5) Administration costs

(d)

A government grant of $35,000 has been received by a medical research

company to fund one of its current projects. The company has recorded this grant as an addition to capital
Begin writing your answer to question 2 on page 35 of the answer booklet.

NOTHING WRITTEN ON THE PRESENT BOOKLET WILL BE TAKEN INTO
CONSIDERATION

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Sunflower also wrote off all accounts receivable that were over one year old. The following additional information relates to the years ended 31 December 2004 and 2005:

Suggested time: 10 minutes
Maximum score: 30 points
.

2004

The following information applies to the cash account of Concord Limited as at 30

2005

Credit Sales
Dollars

Bank Balance as per company accounts

$2,400,000

$2,915,000

None

Recovery of accounts previously written off

30.00

Note collected by the bank for the company

$3,000,000

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