Name: Md Mobvey Nunzaxin Al Moti ID: 19281004 Couvge codes ACE 2402 Semester Final exam Date: 09/11/2020 Page: 1 Answer #3 Dive In Company Statement of Cosh fous For He year ended December $1, 2019 Cosh fous fem opecting aetivities Sales of land 32,000 burchose é egtipment an (60,000) Bet coshKited Jor fmareity actiities (280° 2) Tssuaree. Comnen Stock ° tatengtt fg bonds Fee Payment of dividends CYS, 000) Net cagh used f° Girsreing activities (63,000) Net inereose jn cash comin Cathal bepinning 342 00 O- leah eb aning eee Net Ineome 103,900 Adjustments Dep expense 32,000 Trevease in AWB C17,€2°) eereose in supplies 200 Deaveose ‘Goce Freees® in prepaid eyorses | 2,000 Deeveose in ALC (%20°9) 24,000 Net cask dverm eperating aebivities, 727,000 Scanned with CamScannerND Mehvez Mugyexin Al-Moti 13231@04 foge;:O2 Arsucec #2 2) The diveet unite - off method is theoretically undesiveable because jt” provides no matehing and We veeenia veeeivables are nol stated af Cosh realizable value, [+ is also not acceptable por financial vepoctng beeause expenses ill be understated in the financial statements. Abe, aecounls veccivedle wil) be overstated: . | Joursl 5 Dest «| Cvedit Date rceount Aame Nov, 20 C. 52 aa 7 Ceabit Covel discount 18 jales ev seo Nov: 25 Account receivable 2,800 Sales rev 2.700 Ceustomer €) Nov-2@ | Account receivohle 3,200 Sales vev 200 Ceestoner DD Nov. 30 Sales veturn and allouanee 600 Aceount ceceivable 600 Cevstemex DS Dea é Cosh 6468 Sales Dseount 132 Accoun} receivable 66028 (eustoner D) Dee. 50 } 2.900 Account veecivable 2,200 ° Cevstomer €) Scanned with CamScannerNd Marcay Munyarin Al-Moti 19231004 Age:o38 Anuwer #1 Materialite vavies jn velevanee from company to Company. Informa ion 45 relevent ox material if omitting ox masvepresente ting it eoulk ing luenee decisions that alll be mode on the doses £ the provided Financial informations iy an information is immaterial, (1 % jrrelevent, anc it vrill hve no impacton Ke deccsions being made, The company ox ogpanssation will determine Ke extent bo uhich an information adoutan item is | material before ~veporting Hm the comenay eggs Firanesal vepert: | Assessing the meterialliy of an Hers often ctallengig Jt vepuires evaluating beth he veledive. size and importance of te item. ' Bbc_examples A corpaany ychieh is worth $10 million cs oued $100 bya customers uho has dafaubled . This K immaterial fo the Financial stotements gt the eonpany, However, at the customer owed $1 million, Yen the information would offeet deecsyong and would deo trateré| Scanned with CamScannerScanned with Car iP MD Moka Mungain Al-Moti 1j23L004 . hage:04 Arsmer HC Tent & Toop Corporation Jy brenev«! Zouere) fer the yor 2019 pate Accounts debit | Creait Meek J] Cash Dividend 15,000 Dividend payable gece Marek 30) Dividend payadle AD Cosh 15,¢°° July 10 | Stock Dividend 1280 L Comnen Sleek dividend diteDubosle ake Paid-in copital in excess EEO $ por- commen stock ce Aug 5 Common stock dividencl desteiuteble 750 Commer stock 750 Dee3t jee neome Summay Ws, 200 Retained earnings u3,800 | 2 Balanec Sheet Cpavital) | for the year ended Nee 31,2020 | Capital stocks Common cfock. $1 por value 509, 060 authorized ard 5,750 haces 575° Lsgued and ortstonding Additional faid-in cop ital; Tr excess of per-Commen stoet 1g50° Total paickin aapitel 16250 Retained earni asso tal stockholders egucly EBEOe mScannerMD Mahvar Mugzorin AI Moti 19234 O0Y4 2 Page: 0S Arsen 4 Computation Total depreciation over 6 years -72,008 -3,600 > 68,100 fer year dep. = Stoo” = 1L4oo Por bmorths - ILWOo 2 +3700 Journa! July J, 2020 Dep expense. 5700 Ace. Dep SF#OO Dep expense Ja 1 Ace dep. 5,700 | | 5.420 Ace Dep Jan! Balanee aly | Dep experse 34200 | 5,FOO 139,900 of, lam i | Scanned with CamScannerND Moheay Manzarin Al Moti 19221004 Aye: 06 5) Journal Account pe | oe i) | Casa 24,000 Ace. Dep 28,500 ° gposa o Loss | in déspesal 19,5° 72,000 Machinery | Cosh 36009 Ace: Dep 98,622 Legs on Agposal 7500 Machines RRS iT) Machin ) “S 78,000 Pecan 28,522 Lege on dispose | 13,500 Cost, 1Z00° Mechineny 72,000 iv) Mechinery YUZ,00° Cogh Y,000 i | 29500 Ace Dep oo . oO Machinery sob Profit on osposea! Scanned with CamScanner