Sherif Consultant Group provides engineering consulting services. During January 2019, Sherif recorded over 25 transactions including starting the business, purchases, sales, expenses, payments, and adjustments. The assistant summarized the accounting cycle by journalizing transactions, posting to accounts, and preparing financial statements including an income statement showing net income of $12,000 and an ending capital balance of $76,500, as well as a balance sheet with total assets of $87,500 equal to total liabilities and owner's equity.
Sherif Consultant Group provides engineering consulting services. During January 2019, Sherif recorded over 25 transactions including starting the business, purchases, sales, expenses, payments, and adjusting entries. The transactions were recorded in a general journal and posted to accounts. Financial statements including an income statement, owner's equity statement, and balance sheet were prepared showing the results for the month.
Sherif Consultant Group provides engineering consulting services. The document provides 25 transactions from January 1-25, 2019 to practice journalizing, posting to accounts, and preparing financial statements using the accounting equation and T-accounts. Key aspects covered include unearned and prepaid revenues, depreciation using straight-line method, and allowance method for estimating uncollectible accounts. The income statement shows net income of $12,000 and the balance sheet lists assets of $87,500 equal to liabilities and owner's equity.
Principal accounting - Ch04 completing the accounting cycleArfan Fahmi
The document summarizes the steps in the accounting cycle and how to prepare a work sheet. It outlines 6 objectives to be covered, which include the 7 basic steps of the accounting cycle, how to prepare a work sheet and financial statements, adjusting and closing entries, fiscal year vs natural business year, and analyzing financial solvency. It then provides an example work sheet and walks through 6 adjustments to account balances to arrive at the adjusted trial balance.
The document contains several accounting questions related to consolidated financial statements. It provides the individual balance sheets of companies P and S, and asks the reader to prepare a consolidated balance sheet by eliminating intra-group transactions and accounting for non-controlling interests. The questions require calculating goodwill on acquisition, adjusting assets to fair value on acquisition, and accounting for deferred consideration and loans between the parent and subsidiary.
This document discusses accounting concepts related to merchandising operations and the multiple-step income statement. It defines key terms like cost of goods sold, gross profit, and profit margin ratio. It explains the differences between perpetual and periodic inventory systems, and how to record purchases, sales, returns, and discounts under each. The document also distinguishes between single-step and multiple-step income statements and discusses factors that affect profitability.
This document discusses process costing concepts including:
1. Equivalent units is used to calculate average unit costs and represents partially completed units as a percentage of whole units.
2. Conversion costs include direct labor and overhead costs incurred throughout the production process.
3. Cost per equivalent unit is calculated by dividing the total costs (beginning WIP + costs incurred) by the total units (completed + equivalent units in ending WIP).
4. Reconciliation ensures calculations are correct and no units are lost by accounting for the total number of units.
The document provides a list of timing concepts and their descriptions to match. It asks the reader to match each concept with its description. It also provides two "Do it!" exercises asking the reader to prepare adjusting entries for deferrals and accruals based on sample company information.
This document contains a 25 question multiple choice test on cash flow statements for a VCE Accounting unit. It provides the questions, multiple choice answers, and some additional context and explanations of cash flow statement concepts. The test covers topics like classifying transactions into operating, investing and financing activities on a cash flow statement and calculating net cash flows in each section. It also includes some numerical cash flow statement questions involving calculating net cash flows and ending bank balances.
Sherif Consultant Group provides engineering consulting services. During January 2019, Sherif recorded over 25 transactions including starting the business, purchases, sales, expenses, payments, and adjusting entries. The transactions were recorded in a general journal and posted to accounts. Financial statements including an income statement, owner's equity statement, and balance sheet were prepared showing the results for the month.
Sherif Consultant Group provides engineering consulting services. The document provides 25 transactions from January 1-25, 2019 to practice journalizing, posting to accounts, and preparing financial statements using the accounting equation and T-accounts. Key aspects covered include unearned and prepaid revenues, depreciation using straight-line method, and allowance method for estimating uncollectible accounts. The income statement shows net income of $12,000 and the balance sheet lists assets of $87,500 equal to liabilities and owner's equity.
Principal accounting - Ch04 completing the accounting cycleArfan Fahmi
The document summarizes the steps in the accounting cycle and how to prepare a work sheet. It outlines 6 objectives to be covered, which include the 7 basic steps of the accounting cycle, how to prepare a work sheet and financial statements, adjusting and closing entries, fiscal year vs natural business year, and analyzing financial solvency. It then provides an example work sheet and walks through 6 adjustments to account balances to arrive at the adjusted trial balance.
The document contains several accounting questions related to consolidated financial statements. It provides the individual balance sheets of companies P and S, and asks the reader to prepare a consolidated balance sheet by eliminating intra-group transactions and accounting for non-controlling interests. The questions require calculating goodwill on acquisition, adjusting assets to fair value on acquisition, and accounting for deferred consideration and loans between the parent and subsidiary.
This document discusses accounting concepts related to merchandising operations and the multiple-step income statement. It defines key terms like cost of goods sold, gross profit, and profit margin ratio. It explains the differences between perpetual and periodic inventory systems, and how to record purchases, sales, returns, and discounts under each. The document also distinguishes between single-step and multiple-step income statements and discusses factors that affect profitability.
This document discusses process costing concepts including:
1. Equivalent units is used to calculate average unit costs and represents partially completed units as a percentage of whole units.
2. Conversion costs include direct labor and overhead costs incurred throughout the production process.
3. Cost per equivalent unit is calculated by dividing the total costs (beginning WIP + costs incurred) by the total units (completed + equivalent units in ending WIP).
4. Reconciliation ensures calculations are correct and no units are lost by accounting for the total number of units.
The document provides a list of timing concepts and their descriptions to match. It asks the reader to match each concept with its description. It also provides two "Do it!" exercises asking the reader to prepare adjusting entries for deferrals and accruals based on sample company information.
This document contains a 25 question multiple choice test on cash flow statements for a VCE Accounting unit. It provides the questions, multiple choice answers, and some additional context and explanations of cash flow statement concepts. The test covers topics like classifying transactions into operating, investing and financing activities on a cash flow statement and calculating net cash flows in each section. It also includes some numerical cash flow statement questions involving calculating net cash flows and ending bank balances.
Accounting management: Transfer Pricing ExerciseLetifa Wahyuni
The document describes a situation at GreenWorld Inc., a nursery products firm with three divisions. The Southern Division recently acquired a plastics factory that manufactures pots. The Western Division manager, Rosario, asked the Southern Division manager, Lorne, for a lower internal transfer price of $70 per box of pots instead of the $75 per box price from external vendors.
Lorne's plastics factory has a unit cost of $63 per box and can sell externally at $75 per box. At full production capacity, Lorne should not lower the internal transfer price since he can sell everything externally at the higher price. If the factory is currently selling 16,000 boxes, the minimum transfer price is $53 (
Johnson & Johnson is a large healthcare company founded in 1886 that operates in three segments: pharmaceutical, medical devices, and consumer health. It faces issues like rising healthcare costs, social responsibility concerns, and competition. One such concern was its donation to Planned Parenthood, which some saw as supporting abortion. The document analyzes this issue and provides recommendations, including not publicizing donations to avoid reputation risks, using media instead of websites, and focusing on shareholders and lowering product costs. Overall, with innovation and responsible practices, Johnson & Johnson can continue its long-term success.
A fine example of the quality of work I produce when working passionately in a team.
We dreamed up a new, non-existent (but likely) service then created a marketing strategy around it (centered on promotion, given our class). This plan and the accompanying presentation are perfect examples of my drive to create strategic, exciting projects that blend passion, fun, and marketing.
This document discusses accounting for merchandising businesses. It begins by distinguishing the activities and financial statements of service businesses from merchandising businesses. It then describes the accounting treatment for various merchandising transactions including sales, purchases, transportation costs, and discounts. Specific topics covered include the perpetual and periodic inventory methods, income statements, statements of owner's equity, balance sheets, journal entries for cash, credit and discount sales, and accounting for the costs of goods sold. The objectives are to understand how to account for the key activities of a merchandising business.
The document provides accounting records and information for Alecia McNeil's pastry and frozen products business for the period of May 1 to May 31, 2014. It includes a description of the business, accounting records maintained, aims and objectives, various journal entries, source documents, financial statements including a trading and profit and loss account and balance sheet. The business realized a net profit of $2,305 for the period.
Principles of accounts school based assessmentMartin Robinson
This document contains information about a candidate named Martin Robinson for an examination at Eltham High School in 2016. It includes an acknowledgement, introduction, table of contents, and transactions for Carter's Cream, an ice cream business, during February 2016. The transactions are recorded in source documents like invoices, receipts, debit notes, and petty cash vouchers to track purchases, sales, payments, and expenses of the business.
This document provides an assignment classification table for Chapter 3 of Intermediate Accounting. It classifies the chapter's topics, questions, brief exercises, regular exercises, and problems by topic and learning objective. The table also describes the level of difficulty and estimated time to complete for each assignment. It includes 13 topics covered in the chapter and 10 learning objectives. The document provides guidance for instructors on organizing assignments to help students learn the material.
The document is a case study presentation analyzing the growth and bank financing needs of Horniman Horticulture. It provides background on the company, analyzes its financial performance and ratios, identifies a working capital issue, and makes recommendations. The company is facing a cash shortage as most of its current assets are tied up in receivables and inventory. It is recommended that the company obtain bank financing through a line of credit and implement policies to better manage accounts receivable, inventory, and payables to improve its cash flow situation.
This document discusses adjusting entries in accounting. It explains that adjusting entries convert accounting records to the accrual basis prior to issuing financial statements. It then provides examples of different types of adjusting entries, such as for prepayments, accruals, and estimates. The document includes a numerical example showing the general journal, adjusting journal, and adjusted trial balance for a company called Hamm Equipment Repair. The example adjusting entries account for supplies, salaries payable, depreciation, and unearned service revenue.
1) The document discusses accounting for merchandising operations under a perpetual inventory system. It describes how purchases, sales, returns and allowances are recorded.
2) Purchases are recorded by debiting inventory and crediting accounts payable. Sales are recorded by crediting sales revenue and debiting cost of goods sold and inventory.
3) Returns and allowances are contra accounts that are credited to offset original debit entries for purchases or sales. This summary highlights the key accounting entries for a merchandising business.
Principle Of Accounts School Based Assessments 2017 GuideDarien Guillen
The document provides guidance for completing a school-based assessment (SBA) in accounting. It includes sections like business description, aims of the SBA, transaction list, sample documents, journals, ledgers, trial balance, financial statements, ratios and recommendations. The document was created by Darien Guillen to help understand what the exam board and teacher expect for the SBA and guide the reader through completing it in detail.
The document discusses the steps in preparing a worksheet. It begins by explaining how to prepare a trial balance on the worksheet by transferring account balances from the ledger. The second step is to enter adjusting entries in the adjustments columns. The third step is to complete the adjusted trial balance columns by totaling debits and credits. The fourth step extends adjusted account balances to the appropriate financial statement columns. The final step is to compute net income or loss by totaling the columns and determining the difference between revenues and expenses.
The document introduces Adobe Kickbox, an open-source framework for nurturing innovation in organizations. It consists of a 6-step process for employees to innovate at work, including ideating ideas, improving ideas, investigating ideas in the real world, iterating based on experiments, and infiltrating successful ideas to senior leaders. The framework provides various tools like the Zen statement, scorecard, and canvas to help employees through each step. It also outlines how organizations can deploy Kickbox through 5 phases, from building initial support to running workshops to making innovation kits available. The goal is to create a structured environment where employees are encouraged to innovate within a business context.
Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users. The chapter discusses key accounting concepts such as the accounting equation, assets, liabilities, and owner's equity. It also explains the accounting process, accounting principles, and how business transactions affect the basic accounting equation. The chapter concludes with an explanation of the four main financial statements - the income statement, statement of owner's equity, balance sheet, and statement of cash flows - and how they are prepared.
Social studies school based assessment outlineDeighton Gooden
The document outlines the requirements and tasks for a Social Studies School Based Assessment (SBA) project in the Caribbean. Students must:
1) Conduct guided research on a topic related to social or economic issues in their community. They must state the problem as a research question, rationale, and additional research questions.
2) Design a data collection instrument, describe procedures, and present and analyze findings through graphs, tables or other visuals.
3) Provide conclusions and recommendations based on three findings. The final SBA report must be 1000-1200 words and include all outlined tasks. Drafts are due in November and February, with strict deadlines to allow teacher feedback.
This document provides answers to questions from chapters 1-7 of an accounting textbook. It includes numerical answers to balance sheet and accounting equation questions, sample ledger accounts showing debits and credits, and examples of accounts that have been balanced off by transferring the balance to the new period. The high level information provided includes accounting concepts and principles covered in each chapter, sample ledger accounts demonstrating double-entry bookkeeping, and the process of balancing accounts.
The document provides information about inventory cost flow assumptions and calculations for Perkins Inc. for the month of October 2017. It asks the reader to calculate ending inventory, cost of goods sold, gross profit, and gross profit rate using LIFO, FIFO, and average costing methods. It also asks the reader to compare the results of the three methods and identify which method most closely approximates physical flow of inventory.
Solki's Repair Shop had the following transactions in May: it invested $10,000 cash to start the business, purchased $5,000 of equipment, paid $400 for May rent, paid $500 for supplies, incurred $250 of advertising costs, received $6,100 from customers for repairs, withdrew $1,000 for personal use, paid employee salaries of $2,000, paid $170 for utilities, performed $750 worth of repairs on account, and collected $120 for those services.
Accounting management: Transfer Pricing ExerciseLetifa Wahyuni
The document describes a situation at GreenWorld Inc., a nursery products firm with three divisions. The Southern Division recently acquired a plastics factory that manufactures pots. The Western Division manager, Rosario, asked the Southern Division manager, Lorne, for a lower internal transfer price of $70 per box of pots instead of the $75 per box price from external vendors.
Lorne's plastics factory has a unit cost of $63 per box and can sell externally at $75 per box. At full production capacity, Lorne should not lower the internal transfer price since he can sell everything externally at the higher price. If the factory is currently selling 16,000 boxes, the minimum transfer price is $53 (
Johnson & Johnson is a large healthcare company founded in 1886 that operates in three segments: pharmaceutical, medical devices, and consumer health. It faces issues like rising healthcare costs, social responsibility concerns, and competition. One such concern was its donation to Planned Parenthood, which some saw as supporting abortion. The document analyzes this issue and provides recommendations, including not publicizing donations to avoid reputation risks, using media instead of websites, and focusing on shareholders and lowering product costs. Overall, with innovation and responsible practices, Johnson & Johnson can continue its long-term success.
A fine example of the quality of work I produce when working passionately in a team.
We dreamed up a new, non-existent (but likely) service then created a marketing strategy around it (centered on promotion, given our class). This plan and the accompanying presentation are perfect examples of my drive to create strategic, exciting projects that blend passion, fun, and marketing.
This document discusses accounting for merchandising businesses. It begins by distinguishing the activities and financial statements of service businesses from merchandising businesses. It then describes the accounting treatment for various merchandising transactions including sales, purchases, transportation costs, and discounts. Specific topics covered include the perpetual and periodic inventory methods, income statements, statements of owner's equity, balance sheets, journal entries for cash, credit and discount sales, and accounting for the costs of goods sold. The objectives are to understand how to account for the key activities of a merchandising business.
The document provides accounting records and information for Alecia McNeil's pastry and frozen products business for the period of May 1 to May 31, 2014. It includes a description of the business, accounting records maintained, aims and objectives, various journal entries, source documents, financial statements including a trading and profit and loss account and balance sheet. The business realized a net profit of $2,305 for the period.
Principles of accounts school based assessmentMartin Robinson
This document contains information about a candidate named Martin Robinson for an examination at Eltham High School in 2016. It includes an acknowledgement, introduction, table of contents, and transactions for Carter's Cream, an ice cream business, during February 2016. The transactions are recorded in source documents like invoices, receipts, debit notes, and petty cash vouchers to track purchases, sales, payments, and expenses of the business.
This document provides an assignment classification table for Chapter 3 of Intermediate Accounting. It classifies the chapter's topics, questions, brief exercises, regular exercises, and problems by topic and learning objective. The table also describes the level of difficulty and estimated time to complete for each assignment. It includes 13 topics covered in the chapter and 10 learning objectives. The document provides guidance for instructors on organizing assignments to help students learn the material.
The document is a case study presentation analyzing the growth and bank financing needs of Horniman Horticulture. It provides background on the company, analyzes its financial performance and ratios, identifies a working capital issue, and makes recommendations. The company is facing a cash shortage as most of its current assets are tied up in receivables and inventory. It is recommended that the company obtain bank financing through a line of credit and implement policies to better manage accounts receivable, inventory, and payables to improve its cash flow situation.
This document discusses adjusting entries in accounting. It explains that adjusting entries convert accounting records to the accrual basis prior to issuing financial statements. It then provides examples of different types of adjusting entries, such as for prepayments, accruals, and estimates. The document includes a numerical example showing the general journal, adjusting journal, and adjusted trial balance for a company called Hamm Equipment Repair. The example adjusting entries account for supplies, salaries payable, depreciation, and unearned service revenue.
1) The document discusses accounting for merchandising operations under a perpetual inventory system. It describes how purchases, sales, returns and allowances are recorded.
2) Purchases are recorded by debiting inventory and crediting accounts payable. Sales are recorded by crediting sales revenue and debiting cost of goods sold and inventory.
3) Returns and allowances are contra accounts that are credited to offset original debit entries for purchases or sales. This summary highlights the key accounting entries for a merchandising business.
Principle Of Accounts School Based Assessments 2017 GuideDarien Guillen
The document provides guidance for completing a school-based assessment (SBA) in accounting. It includes sections like business description, aims of the SBA, transaction list, sample documents, journals, ledgers, trial balance, financial statements, ratios and recommendations. The document was created by Darien Guillen to help understand what the exam board and teacher expect for the SBA and guide the reader through completing it in detail.
The document discusses the steps in preparing a worksheet. It begins by explaining how to prepare a trial balance on the worksheet by transferring account balances from the ledger. The second step is to enter adjusting entries in the adjustments columns. The third step is to complete the adjusted trial balance columns by totaling debits and credits. The fourth step extends adjusted account balances to the appropriate financial statement columns. The final step is to compute net income or loss by totaling the columns and determining the difference between revenues and expenses.
The document introduces Adobe Kickbox, an open-source framework for nurturing innovation in organizations. It consists of a 6-step process for employees to innovate at work, including ideating ideas, improving ideas, investigating ideas in the real world, iterating based on experiments, and infiltrating successful ideas to senior leaders. The framework provides various tools like the Zen statement, scorecard, and canvas to help employees through each step. It also outlines how organizations can deploy Kickbox through 5 phases, from building initial support to running workshops to making innovation kits available. The goal is to create a structured environment where employees are encouraged to innovate within a business context.
Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users. The chapter discusses key accounting concepts such as the accounting equation, assets, liabilities, and owner's equity. It also explains the accounting process, accounting principles, and how business transactions affect the basic accounting equation. The chapter concludes with an explanation of the four main financial statements - the income statement, statement of owner's equity, balance sheet, and statement of cash flows - and how they are prepared.
Social studies school based assessment outlineDeighton Gooden
The document outlines the requirements and tasks for a Social Studies School Based Assessment (SBA) project in the Caribbean. Students must:
1) Conduct guided research on a topic related to social or economic issues in their community. They must state the problem as a research question, rationale, and additional research questions.
2) Design a data collection instrument, describe procedures, and present and analyze findings through graphs, tables or other visuals.
3) Provide conclusions and recommendations based on three findings. The final SBA report must be 1000-1200 words and include all outlined tasks. Drafts are due in November and February, with strict deadlines to allow teacher feedback.
This document provides answers to questions from chapters 1-7 of an accounting textbook. It includes numerical answers to balance sheet and accounting equation questions, sample ledger accounts showing debits and credits, and examples of accounts that have been balanced off by transferring the balance to the new period. The high level information provided includes accounting concepts and principles covered in each chapter, sample ledger accounts demonstrating double-entry bookkeeping, and the process of balancing accounts.
The document provides information about inventory cost flow assumptions and calculations for Perkins Inc. for the month of October 2017. It asks the reader to calculate ending inventory, cost of goods sold, gross profit, and gross profit rate using LIFO, FIFO, and average costing methods. It also asks the reader to compare the results of the three methods and identify which method most closely approximates physical flow of inventory.
Solki's Repair Shop had the following transactions in May: it invested $10,000 cash to start the business, purchased $5,000 of equipment, paid $400 for May rent, paid $500 for supplies, incurred $250 of advertising costs, received $6,100 from customers for repairs, withdrew $1,000 for personal use, paid employee salaries of $2,000, paid $170 for utilities, performed $750 worth of repairs on account, and collected $120 for those services.
1. The document discusses key accounting concepts like the accounting equation, double-entry recording, T-accounts, debit and credit rules for different types of accounts.
2. It provides examples of recording business transactions like starting a business, purchases, expenses, revenues using T-accounts and following the double-entry system.
3. Special accounts like returns inwards, returns outwards are discussed which are used to record returns of goods from customers or suppliers.
The document summarizes transactions from May for Solki's Repair Shop. Key details include:
- Solki Lee started the repair shop on May 1 and invested $10,000 in cash.
- The shop purchased $5,000 of equipment for cash and paid $400 for May office rent in cash.
- The shop received $6,100 in cash from customers, paid $2,000 in employee salaries, and $170 in utility bills.
- The shop performed $750 of repair services on account and collected $120 in cash for those services.
It is the financial accounting project all basis transactions end to closing trial balance of an accounting cycle is provided.
it is a project of a software house.
The document discusses the accounting cycle process which involves analyzing transactions, recording journal entries, preparing adjusting entries, and generating financial statements on a monthly, quarterly, or annual basis. It provides an example for ABC Company for the month of January, showing the steps of preparing journal entries, a trial balance, income statement, retained earnings statement, and closing revenue and expense accounts. It also discusses how to prepare a post-closing trial balance, balance sheet, and statement of cash flows to complete the accounting cycle.
AWeek Five Exercise AssignmentFinancial Ratios1. Liquidity r.docxikirkton
AWeek Five Exercise Assignment
Financial Ratios
1. Liquidity ratios. Edison, Stagg, and Thornton have the following financial information at the close of business on July 10:
Edison
Stagg
Thornton
Cash
$4,000
$2,500
$1,000
Short-term investments
3,000
2,500
2,000
Accounts receivable
2,000
2,500
3,000
Inventory
1,000
2,500
4,000
Prepaid expenses
800
800
800
Accounts payable
200
200
200
Notes payable: short-term
3,100
3,100
3,100
Accrued payables
300
300
300
Long-term liabilities
3,800
3,800
3,800
a. Compute the current and quick ratios for each of the three companies. (Round calculations to two decimal places.) Which firm is the most liquid? Why?
2. Computation and evaluation of activity ratios. The following data relate to Alaska Products, Inc:
20X5
20X4
Net credit sales
$832,000
$760,000
Cost of goods sold
440,000
350,000
Cash, Dec. 31
125,000
110,000
Average Accounts receivable
180,000
140,000
Average Inventory
70,000
50,000
Accounts payable, Dec. 31
115,000
108,000
a. Compute the accounts receivable and inventory turnover ratios for 20X5. Alaska rounds all calculations to two decimal places.
3. Profitability ratios, trading on the equity. Digital Relay has both preferred and common stock outstanding. The company reported the following information for 20X7:
Net sales
$1,500,000
Interest expense
$120,000
Income tax expense
$80,000
Preferred dividends
$25,000
Net income
$130,000
Average assets
$1,100,000
Average common stockholders' equity
$400,000
a. Compute the profit margin ratio, the return on equity and the return on assets, rounding calculations to two decimal places.
b. Does the firm have positive or negative financial leverage? Briefly explain.
4. Horizontal analysis. Mary Lynn Corporation has been operating for several years. Selected data from the 20X1 and 20X2 financial statements follow.
20X2
20X1
Current Assets
$76,000
$80,000
Property, Plant, and Equipment (net)
99,000
90,000
Intangibles
25,000
50,000
Current Liabilities
40,800
48,000
Long-Term Liabilities
143,000
160,000
Stockholders’ Equity
16,200
12,000
Net Sales
500,000
500,000
Cost of Goods Sold
332,500
350,000
Operating Expenses
93,500
85,000
Prepare a horizontal analysis for 20X1 and 20X2. Briefly comment on the results of your work.
5. Vertical analysis. Mary Lynn Corporation has been operating for several years. Selected data from the 20X1 and 20X2 financial statements follow.
20X2
20X1
Current Assets
$ 76,000
$ 80,000
Property, Plant, and Equipment (net)
99,000
90,000
Intangibles
25,000
50,000
Current Liabilities
40,800
48,000
Long-Term Liabilities
143,000
160,000
Stockholders’ Equity
16,200
12,000
Net Sales
500,000
500,000
Cost of Goods Sold
332,500
350,000
Operating Expenses
93,500
85,000
Prepare a vertical analysis for 20X1 and 20X2. Briefly comment on the results of your work.
6. Ratio computation. The financial statements of the Lone Pine Company follow.
LONE PINE COMPANY
Comparat ...
6. Entry and trial balance preparation. Lee Adkins is a portra.docxssuser774ad41
6.
Entry and trial balance preparation
. Lee Adkins is a portrait artist. The following schedule represents Lee’s combined chart of accounts and trial balance as of May 31.
Account number
Account name
Debit
Credit
110
Cash
$ 2,700
120
Accounts Receivable
12,100
130
Equipment and Supplies
2,800
140
Studio
45,000
210
Accounts Payable
$2,600
310
Lee Adkins, Capital
57,400
320
Lee Adkins, Drawing
30,000
410
Professional Fee Revenue
39,000
510
Advertising Expense
2,300
520
Salaries Expense
2,100
540
Utilities Expense
2,000
$99,000
$99,000
The general ledger also revealed account no. 530, Legal and Accounting Expense. The following transactions occurred during June:
6/2
Collected $3,000 on account from customers
6/7
Sold 25% of the equipment and supplies to a young artist for $700 cash
6/10
Received a $300 invoice from the accountant for preparing last quarter's financial Statements.
6/15
Paid $1,900 to creditors on account.
6/27
Adkins withdrew $2,000 cash for personal use.
6/30
Billed a customer $3,000 for a portrait painted this month.
a. Record the necessary journal entries for June on page 2 of the company’s general journal. (See Exhibit 2.6)
b. Open running balance ledger “T” accounts by entering account titles, account numbers, and May 31 balances. (See exhibit 2.3 and 2.4)
c. Post the journal entries to the “T” accounts.
d. Prepare a trial balance as of June 30. (See exhibit 2.9)
7. Journal entry preparation.
On January 1 of the current year, Peter Houston invested $80,000 cash into his companyMuniServ.The cash was obtained from an owner investment by Peter Houston of $50,000 and a $30,000 bank loan. Shortly thereafter, the company acquired selected assets of a bankrupt competitor. The acquisition included land ($10,000), a building ($40,000), and vehicles ($10,000). MuniServ paid $45,000 at the time of the transaction and agreed to remit the remaining balance due of $15,000 (an account payable) by February 15.
During January, the company had additional cash outlays for the following items:
Purchases of store equipment
$4,600
Note payment
500
Salaries expense
2,300
Advertising expense
700
The January utility bill of $200 was received on January 31 and will be paid next month. MuniServ rendered services to clients on account amounting to $9,400.
All customers have been billed; by month end, $3,700 had been received in settlement of account balances.
Instructions
a.
Present journal entries that reflect MuniServ's January transactions, including the $80,000raised from the owner investment and loan. (See exhibit 2.6)
b.
Compute the total debits, total credits, and ending balance that would befound in the company's Cash account. (Post to “T” Accounts, see exhibit 2.3 and 2.4)
c.
Determine the amount that would be shown on the January 31 trial balance for Accounts
Payable. Is the balance a debit or a credit?
.
Accounting Help Needed by 1010Displaying messages 1 - 3 of 3P.docxrenatas0nie
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2015-10-09 17:20
Hi Can you do this? $40.
Floppy Company's December 31, 2014 trial balance is as follows:
Floppy Corporation
Trial Balance
December 31, 2014
Account
Debit
Credit
Cash
$43,500
Accounts Receivable
53,500
Allowance for Doubtful Accounts
1,500
Notes Receivable
30,000
Merchandise Inventory
55,000
Land
20,000
Building
150,000
Accumulated Depreciation, Building
$15,000
Equipment
50,000
Accumulated Depreciation, Equipment
21,000
Goodwill
26,000
Accounts Payable
25,000
Long Term Notes Payable
75,000
Common Stock, $10 par, 2,000 shares authorized & outstanding
20,000
Retained Earnings
147,000
Sales Revenue
700,000
Salaries Expense
150,000
Utilities Expense
3,500
Cost of Goods Sold
350,000
Administrative Expenses
55,000
Sales Expenses
15,000
_______
Totals
$1,003,000
$1,003,000
Floppy is a small company and records adjusting entries & closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded.
Additional Information:
a. Notes Receivable is a 3-months, 6% note accepted on November 1, 2014.
b. Long Term Notes Payable is a 5-year, 5% note, that was signed on July 1, 2014. Interest is payable annually.
c. Building is depreciated at 3% per year. There is no salvage value.
d. Equipment is depreciated at 15% year. There is no salvage value.
e. Floppy discovered, on December 30
th
, that the inexperienced bookkeeper recorded in the general journal and general ledger that day's $1,500 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue.
f. The year-end physical count for Merchandise Inventory reflected a value of $51,500. Any difference in value will not be considered theft or loss.
g. Salaries for the last half of December, payable in January, amount to $5,500.
h. Floppy estimates that of the Accounts Receivable 5% will not be collectable.
Required:
a. Prepare in journal form, any required correcting entries
b. Prepare in journal form, all end-of-the period adjusting entries
c. Prepare a December adjusted trial balance
d. Prepare a classified balance sheet for the year ended December 31, 2014
e. Prepare in journal form, the closing entries for the year ended December 31, 2014
Floppy uses the period method and had the following inventory events during January:
Date
Units Purchased
Unit Cost
Date
Units Sold
Unit Sales Price
Jan. 1
150
$7.00
Jan. 2
100
$10.00
Jan. 5
225
7.20
Jan. 7
125
10.00
Jan. 10
100
7.50
Jan. 12
75
12.00
Jan. 15
150
7.80
Jan. 17
200
12.50
Jan. 20
200
7.95
Jan. 24
150
15.00
Jan. 25
150
8.00
Jan. 30
75
8.20
Note:
January 1 amount was the beginning inventory and unit value.
(Round all total dollar values to the nearest dollar. Round all unit values to the nearest penny.)
Required:
a. Calculate cost of goods available for sale.
b. Calculate the dollar v.
- Cain Company paid $8,400 rent in advance on June 1, 2019 for a seven-month period. It also bought $10,250 of supplies.
- Desoto Company must make three adjusting entries on December 31, 2019 for supplies used, expired insurance, and depreciation expense.
- The adjusted trial balance for University Book Store shows account balances and that adjustments have been made for supplies used, expired rent, and depreciation expense.
The document provides a tutorial with solutions for ACC 205 Week 1-5 assignments on financial ratios. It includes 16 pages of tutorial solutions and 10 practice problems covering basic accounting concepts like identifying assets, liabilities, revenues and expenses; preparing basic financial statements; journal entries; adjusting entries; and bank reconciliations. The high-level tasks involve preparing basic financial statements, journal entries, adjusting entries and a bank reconciliation based on sample business transactions provided.
Week Four Exercise AssignmentLiability1. Payroll accounting. A.docxalanfhall8953
Week Four Exercise Assignment
Liability
1. Payroll accounting. Assume that the following tax rates and payroll information pertain to Brookhaven Publishing:
· Social Security taxes: 6% on the first $55,000 earned
· Medicare taxes: 1.5% on the first $130,000 earned
· Federal income taxes withheld from wages: $7,500
· State income taxes: 5% of gross earnings
· Insurance withholdings: 1% of gross earnings
· State unemployment taxes: 5.4% on the first $7,000 earned
· Federal unemployment taxes: 0.8% on the first $7,000 earned
The company incurred a salary expense of $50,000 during February. All employees had earned less than $5,000 by month-end.
a. Prepare the necessary entry to record Brookhaven’s February payroll. The entry will include deductions for the following:
· Social Security taxes
· Medicare taxes
· Federal income taxes withheld
· State income taxes
· Insurance withholdings
b. Prepare the journal entry to record Brookhaven’s payroll tax expense. The entry will include the following:
· Matching Social Security taxes
· Matching Medicare taxes
· State unemployment taxes
· Federal unemployment taxes
2. Current liabilities: entries and disclosure. A review of selected financial activities of Visconti’s during 20XX disclosed the following:
12/1
Borrowed $20,000 from the First City Bank by signing a 3- month, 15% note payable. Interest and principal are due at maturity.
2/10
Established a warranty liability for the XY-80, a new product. Sales are expected to total 1,000 units during the month. Past experience with similar products indicates that 2% of the units will require repair, with warranty costs averaging $27 per unit.
12/22
Purchased $16,000 of merchandise on account from Oregon Company, terms 2/10, n/30.
12/26
Borrowed $5,000 from First City Bank; signed a note payable due in 60 days.
12/31
Repaired six XY-80s during the month at a total cost of $162.
12/31
Accrued 3 days of salaries at a total cost of $1,400.
Instructions
a. Prepare journal entries to record the transactions.
b. Prepare adjusting entries on October 31 to record accrued interest.
c. Prepare the Current Liability section of Red Bank’s balance sheet as of October 31. Assume that the Accounts Payable account totals $203,600 on this date.
3. Notes payable. Red Bank Enterprises was involved in the following transactions during the fiscal year ending October 31:
8/2:
Borrowed $75,000 from the Bank of Kingsville by signing a 120-day note.
8/20:
Issued a $40,000 note to Harris Motors for the purchase of a $40,000 delivery truck. The note is due in 180 days and carries a 12% interest rate.
9/10:
Purchased merchandise from Pans Enterprises in the amount of $15,000. Issued a 30-day, 12% note in settlement of the balance owed.
9/11:
Issued a $60,000 note to Datatex Equipment in settlement of an overdue account payable of the same amount. The note is due in 30 days and carries a 14% interest rate.
10/10:
The note to Pans Enterprises was p.
This document provides a 30 question multiple choice final exam for ACC 290 Principles of Accounting I. It tests fundamental accounting concepts like the four basic financial statements, debits and credits, adjusting entries, and inventory costing methods. The questions cover the accounting equation, calculating financial metrics like cost of goods sold and gross profit, and basic bookkeeping skills like journal entries and T-accounts. Correct answers to all 30 questions are provided for $8.99.
Course material for An introduction to keeping financial records in business for small and medium sized enterprises organised by the Lagos hub of the Global Shapers with support from Abraaj for small and medium enterprises in Lagos NIgeria held in June 2016
The document provides an overview of basic accounting principles including:
1) The accounting equation that balances assets, liabilities, and owner's equity.
2) Journal entries that record business transactions by debiting and crediting appropriate accounts.
3) The process of transferring journal entries to individual accounts in the general ledger.
Part 3-4 Posting and Trial Balance PreparationMichael Alonzo
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XYZ Company provided its trial balance as of December 31, 2015. The document lists account balances and additional information regarding notes receivable, notes payable, building and equipment depreciation, and inventory. It provides several required tasks including preparing correcting and adjusting entries, an adjusted trial balance, classified balance sheet, and closing entries.
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The document discusses Porter's five forces model and different market structures. It defines perfect competition, monopolistic competition, oligopoly, and monopoly market structures. It also discusses economies of scale, the four-firm concentration ratio, and the Herfindahl-Hirschman Index (HHI) for measuring market concentration. Several questions are posed about these topics and answered in the document.
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Financial Accounting & Reporting Final - Allen Youssef.docxELECTRICEGYPT
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3. Methods for calculating cost of goods sold using FIFO, weighted average and LIFO were explained.
4. Calculations for net sales, net purchases, cost of goods purchased, cost of goods available and cost of goods sold were shown.
5. Journal entries were provided for various transactions by Olio Corporation involving the issuance and repurchase of common and preferred stocks.
6. Stockholders' equity section of the balance sheet was presented for
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accounting exam (2).docx
1. Question One :
Create your own company describing the nature of the company and what it provides
(should be providing services and assume it is a sole proprietorship).
Show in details the accounting cycle (journalizing in general journal, posting in general
ledger and preparing financial statements taking into consideration the following:
• Transaction to start with not less than 25 transactions (including at least one
unearned and one prepaid transactions)
• Use the coding for the accounts used
• During the adjusting period please make sure you have covered all six categories
discussed in class
• Make sure to show the method used to calculate the depreciation highlighting over
the reason on choosing this specific method
• Assume you are using the allowance method in estimating the uncollected accounts
for Accounts receivables.
2. Answer:
Sherif consultant group provides engineering consulting services. During
January 2019, the following transactions occurred:
Jan. 1 Owner capital 50,000$ and a new computer costing 20,500 $ to start the business.
Jan. 2 Office supplies were purchased on account for 4,000$.
Jan. 3 Rent building for 2 years for 500$ for a month on account.
Jan. 4 Sherif consultant group obtained a 12% 5-year loan of 20,000$ from the bank.
Jan. 5 Paid 2,750$ the utility bills on account.
Jan. 6 Paid the 3,000$ in Accounts Payable from the purchase of office supplies on Jan. 2.
Jan. 7 Consulting services completed in January were billed to clients SODIC at 18,300$.
Jan. 8 Sherif consultant group received 5,500$ from SODIC, a client, as payment on account.
Jan. 9 Sherif withdrew 6,000$ of cash for personal use.
Jan. 10 Purchased inventory (papers & files) on credit terms of 1/10 net 30. FOB shipping point, for
3,000$. Freight charges on the purchase were 150$.
Jan. 11 Stock 800$ of supplies at end of month on account
Jan. 12 Sold consultant services (papers & files) on credit terms 3/20 net 30, for 4,000$. The cost of
the services sold was 2,500$.
Jan. 13 Paid the amount owed on account for the Jan. 10 inventory purchase.
Jan. 14 Received merchandise that was returned as defective, originally sold for 500$ on Jan. 12. The
original cost of the supplies returned was 275$.
Jan. 15 Received payment on account for the Jan. 12 sale less the appropriate sales discount.
Jan. 16 Paid 2,750$ in account payable for the utility bill on Jan. 5.
Jan. 17 Paid 1,000$ income taxes on account.
Jan. 18 Paid 2,000$ for advertising in the newspaper on the account.
Jan. 19 Paid 100$ office cleaning on cash.
Jan. 20 Paid 2,000$ in account payable for the advertising on Jan. 18.
Jan. 21 Paid 800$ in account payable for the supplies on Jan. 11.
Jan. 22 Palm Hills paid 10,000$ in advance for consulting services on cash.
Jan. 23 Paid 500$ in account payable for the Rent on Jan. 3.
Jan. 24 Paid 3,000$ for 1 year insurance policy on cash.
3. Jan. 25 Paid 1,000$ in account payable for income taxes on Jan. 17.
15. Question Two:
Reineman Supply Company uses a periodic inventory system. During September, the
following transactions and events occurred.
Sept.3 Purchased 90 backpacks at $25 each from Zuzu Company, terms 2/10, n/30.
Sept.6Received credit of $150 for the return of 6 backpacks purchased on Sept. 3 that were
defective.
Sept.9 Sold 15 backpacks for $42 each to Bailey Books, terms 2/10, n/30.
Sept.13 Paid Zuzu Company in full.
Sept.19 Received payments from Bailey Books.
Instructions
Journalize the September transactions for Reineman Supply Company.
17. Question three:
Seif Company sells many products. chairs is one of its popular items. Below is an analysis of
the inventory purchases and sales of chairs for the month of April. Seif’s Company uses the
periodic inventory system. Ending Inventory is determined to be 150 unit.
Purchases
Units Unit
Cost
3/1 Beginning inventory 150 $40
3/3 Purchase 50 $50
3/10 Purchase 250 $55
3/30 Purchase 100 $65
Instructions
(a) Using the FIFO assumption, calculate the amount charged to cost of goods sold for
April. (Show computations)
(b) Using the weighted average method, calculate the amount assigned to the inventory on
hand on April 30. (Show computations)
(c) Using the LIFO assumption, calculate the amount assigned to the inventory on hand on
April 30. (Show computations)
18. Answer:
Ending Inventory = 150 units
a) Using FIFO assumption:
COGS = (150 x 40) + (50 x 50) + (200 x 55)
= 6,000 + 2,500 + 11,000
=19,500
b) Using weight average method:
Total units = 550
Total cost = 28,750$
Average unit weight = 28,750$ / 550 = 52.27$ / Unit
COGS = 400 x 52.27 = 20,908$ Cost of
ending = 150 x 52.27 = 7,840.5$
c) Using LIFO assumption:
COGS = (100 x 65) + (250 x 55) + (50 x 50)
= 6,500 + 13,750 + 2,500
=22,750$
Cost of ending = 150 x40 = 6,000$
19. Question Four:
Assume that Swann Company uses a periodic inventory system and has these account
balances: Purchases $630,000; Purchase Returns and Allowances $25,000; Purchase Discounts
$11,000; and Freight-In $19,000; beginning inventory of $45,000; ending inventory of
$55,000; and net sales of $750,000.
Instructions:
Determine the:
a) cost of goods sold and
b) Gross profit (show computations)
21. Question Five:
Olio Corporation is authorized to issue 800,000 shares of $5 par value common stock, and
100,000 shares of 8%, $60 par value preferred stock. On January 1, 2019, the second year of
operations, the retained earnings balance was $75,000. During 2019, the company had the
following stock transactions.
Jan. 7 Issued 100,000 shares of common stock at $14 per share.
May. 5
Attorneys for the company accepted 200 shares of common stock as payment for
legal services rendered. The legal services are estimated to have a value of $3,200.
June 1 Issued 10,000 share of preferred a stock at $100 per share.
July 4
Issued 10,000 shares of common stock in exchange for a building. The building
was advertised for $200,000. Olio Corporation's common stock has been actively
traded on the stock exchange at $19 per share at the time of the exchange.
Sept. 1 Purchased 7,000 shares of common stock for the treasury at $20 per share.
Oct. 2 Sold 2,000 shares of the treasury stock at $21 per share.
Oct. 15 Sold 3,000 shares of the treasury stock at $18 per share.
Nov. 1
A cash dividend of $0.25 per share was declared to stockholders of
record on November 15.
Dec. 1 Paid the cash dividends.
Dec.5
A 5% stock dividends was declared. The market price at the
declaration date was $6 per share.
Dec. 30 Distributed the stock dividends shares.
Required: Journalize the 2019 transactions for Olio Corporation.
22. Answer:
General Journal
Date Account Title and Explanations
Amount ($)
Debit Credit
Jan. 7
Cash 1,400,000
Common Stock 500,000
Apic - C.S 900,000
May 5
Organization Exp. 3,200
Common Stock 1,000
Apic - C.S 2,200
June 1
Cash 1,000,000
Common Stock 600,000
Apic - C.S 400,000
July 4
Building 190,000
Common Stock 50,000
Apic - C.S 140,000
Sep. 1
Treasury Stock 140,000
Cash 140,000
Oct. 2
Cash 42,000
Common Stock 40,000
Apic - C.S 2,000
Oct. 15
Cash 54,000
Apic - C.S 2,000
Retained earning 4,000
Treasury Stock 60,000
Nov. 1
Retained earning 200,000
Dividens Pay. 200,000
Dec. 1
Dividens Pay. 200,000
Cash 200,000
Dec. 5
Retained earning 240,000
C.S Distruibutable 200,000
Apic - C.S 40,000
Dec. 30
C.S Distruibutable 200,000
Common Stock 200,000
Total 3,675,200 3,675,200
23. Question Six:
The following accounts appear in the ledger of Alico Corporation after the books
are closed at December 31, 2019.
Common Stock, $2 par value, 700,000 shares authorized, 400,000 shares
issued …………………………………………………………………………$800,000
Paid-in Capital in Excess of Par Value—Common Stock ………………….....650,000
Preferred Stock, $100 par value, 8%, 10,000 shares authorized; 2,000 shares
issued …………………………………………………………………………..200,000
Retained Earnings ……………………………………………………………..900,000
Treasury Stock (10,000 common shares) ………………………………………85,000
Paid-in Capital in Excess of Par Value—Preferred Stock …………………….310,000
Required: Prepare the stockholders' equity section at December 31, 2019.
24. Answer:
Stock holder’s section at 31 December 2019
Paid in capital
Preferred stock, 100$ par value, 8%, 10,000 shares authorized ; 2,000 shares issued
…………………………..………………….. 200,000$
Common stock, 2$ par value, 700,000 shares authorized ; 400,000 shares issued
………. 800,000$
Additional paid in capital
Paid in capital in excess of par value - preferred stock……………………………… 310,000$
Paid in capital in excess of par value - common stock………………………………. 650,000$
Retained earning……………………………………………………………………………………………….900,000$
Less treasury stocks (1,000 common stock)……………………………………………………….-85,000$
Total stock holder’s equity……………………………………………………………………………………2,775,000$
25. Question Seven:
Adham Corporation was organized on January 1, 2019. During its first year, the
corporation issued 40,000 shares of $50 par value preferred stock and 200,000 shares of $5
par value common stock. At December 31, the company declared the following cash
dividends:
December 2017 $80,000
December 2018 195,000
December 2019 300,000
Required:
1. Show the allocation of dividends to each class of stock, assuming that the
preferred stock is 9% and not cumulative.
2. Show the allocation of dividends to each class of stock, assuming that the
preferred stock is 10% and cumulative.
26. Answer:
1) 9% Not cumulative
9% x 50 = 4.5 x 40,000 = 180,000
Date Dividends P.S C.S
Dec. 2017 90,000 90,000 0
Dec. 2018 200,000 180,000 20,000
Dec. 2019 300,000 180,000 120,000
2) 10% Comulative
10% x 50 = 5 x 40,000 = 200,000
Date Dividents P.S C.S
Div InArrears
Dec. 2017 90,000 90,000 0 110,000
Dec. 2018 200,000 200,000 0 0,000
Dec. 2019 300,000 300,000 0 10,000
27. Question Eight:
On January 1, 2019, Western Manufacturing Corporation issued $3,000,000, 10%, 5-
year bonds dated January 1, 2019, at 104. The bonds pay semi-annual interest on January 1
and July 1.
The company uses the straight-line method of amortization and has a December 31, year end.
Instructions:
Prepare the journal entries to record the following:
1. The issuance of bonds on January 1, 2019.
2. The payment of interest and the discount (or premium) amortization on
July 1, 2019.
3. The accrual of interest and the discount (or premium) amortization on
December 31, 2019.
4. The payment of interest on January 1, 2020.
28. Answer:
General Journal
Date Account Title and Explanations
Amount ($)
Debit Credit
1 Jan. 2019
Cash 3,090,000
Bond Premium 90,000
Bond Pay. 3,000,000
1 July 2019
Interest Exp. 141,000
Bond Premium 9,000
Cash 150,000
31 Dec. 2019
Interest Exp. 141,000
Bond Premium 9,000
Interest Pay. 150,000
1 Jan. 2020
Interest Pay. 150,000
Cash 150,000
Total 3,540,000 3,540,000
29. Question Nine:
Ratio analysis case:
Select a corporation and get its financial statements, evaluate the firm’s performance using
the ratio analysis and briefly discuss your findings.
30. This is a case study for ratio analysis of the Sherif Steel
Company last 3 years.
1. Profit Statement
2018 2019 2020
Sales turnover 4.90 M$ 5.30 M$ 6.60 M$
Operating costs 4.17 M$ 4.43 M$ 5.82 M$
Operating profit before tax 0.73 M$ 0.87 M$ 0.78 M$
Taxation 0.24 M$ 0.30 M$ 0.27 M$
Profit after tax 0.49 M$ 0.57 M$ 0.51 M$
Dividends 0.12 M$ 0.16 M$ 0.16 M$
Retained profit 0.37 M$ 0.41 M$ 0.35 M$
Labour costs 0.93 M$ 0.98 M$ 1.25 M$
Distribution costs 0.44 M$ 0.49 M$ 0.61 M$
Administration costs 0.19 M$ 0.22 M$ 0.27 M$
2. Balance sheets
32. 3. Sherif Steel Company Ratios
Average ratios for production members 2020
% Return on capital employed
Asset turnover
Net profit margin
Current ratio
Acid test ratio
Debtors collection period
Gearing ratio
Labour cost % of sales
Operating cost % of sales
Distribution costs % of sales
Admin costs % of sales
26.0%
1.79 times
14.5%
1.5:1
1.03:1
83 days
32.0%
18.1%
85.5%
9.5%
4.5%
Capital and reserves 0.5 M$ 0.91 M$ 1.26 M$
Bank loans 2.21 M$ 2.21 M$ 2.21 M$
2.71 M$ 3.12 M$ 3.47 M$