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Level 3 Accounting > Statements > Flashcards

Statements Flashcards

1
Q

Issue of shares for cash

A

Bank dr

Contributed equity cr

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2
Q

Issue of shares for asset

A

Asset account dr

Contributed equity cr

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3
Q

Shares issued to the public (2)

A

Bank dr
Applications cr

Applications dr
Contributed equity cr

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4
Q

Oversubscription of shares (3)

A

Bank dr
Applications cr

Applications dr
Contributed equity cr

Applications dr
Bank cr

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5
Q

Shares issued using a sharebroker (2)

A

Contributed equity dr
Bank cr

Bank dr
Contributed equity cr

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6
Q

What amount is used in the first journal entry for using a sharebroker?

A

Legal and prospectus costs

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7
Q

What amount is used in the second journal entry for using a sharebroker?

A

The total amount from shares minus the brokerage fee

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8
Q

Repurchase of shares

A

Contributed equity dr
Retained earnings (balance)
Bank cr

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9
Q

What amount is used for contributed equity when shares are repurchased?

A

Number of shares x initial sale price

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10
Q

What amount is used for bank when shares are repurchased?

A

Number of shares x repurchase price

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11
Q

How does a company pass the solvency test?

A

Must be able to pay its debts

Must have assets greater than liabilities

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12
Q

Revaluation of inventory

A

Cost of goods sold dr

Inventory cr

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13
Q

Revaluation of land

A

Land dr

Land revaluation surplus cr

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14
Q

Revaluation of buildings (3)

A

Depreciation on buildings dr
Accumulated depreciation on buildings cr

Accumulated depreciation on buildings dr
Buildings cr

Buildings dr
Buildings revaluation surplus cr

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15
Q

How do you calculate the revaluation amount for buildings?

A

Revaluation amount - (historical cost - accumulated depreciation)

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16
Q

Revaluation of shares/debentures (increase and decrease)

A

Shares/debentures dr
Increase in fair value of financial assets cr

Decrease in fair value of financial assets dr
Shares/debentures cr

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17
Q

Provisional tax payments throughout the year

A

Provisional tax paid dr

Bank cr

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18
Q

Actual tax payment (3)

A

Income tax expense dr
Income tax payable cr

Income tax payable dr
Provisional tax paid cr

Income summary dr
Income tax payable cr

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19
Q

What amounts are used in the three journal entries for actual tax payment?

A
  1. Actual tax amount
  2. Provisional tax paid (from estimated profit)
  3. Actual tax amount
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20
Q

Terminal tax

A

Income tax payable dr

Bank cr

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21
Q

What amount is used for terminal tax?

A

Actual tax amount - provisional tax paid

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22
Q

Payment of final dividends

A 
Final dividend (year) dr
Bank cr
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23
Q

Payment of interim dividends

A 
Interim dividend (year) dr
Bank cr
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24
Q

Payment of dividends (2)

A

Income summary dr
Retained earnings cr

Retained earnings dr
Final dividend (year) cr
Interim dividend (year) cr
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25
What amount is used in the income summary/retained earnings journal entry for payment of dividends?
Profit for the year
26
What is the layout of the income statement? (12)
1. Revenue 2. Other income 3. Total income 4. Less Expenses (list; finance costs, COGS) 5. Total expenses 6. Profit before tax 7. Income tax expense 8. Profit for the year 9. Other comprehensive income 10. Gain on revaluation 11. Other comprehensive income for the year 12. Total comprehensive income for the year
27
Note 1
Revenue | Sales/fees
28
Note 2
Other income | list; includes increase in fair value of financial assets
29
Note 3
Auditor's remuneration | list
30
Note 4
Finance costs | list interest expenses
31
What is the layout of the equity section in the statement of financial position?
``` Contributed equity Land revaluation surplus Buildings revaluation surplus Retained earnings Total equity ```
32
What is financial assets and where does it go?
Includes investments and debentures and goes under current assets
33
What are the non-current assets?
PPE and intangible assets
34
What is the contributed equity amount in the statement?
Amount calculated in note 9
35
What is the retained earnings amount in the statement?
Profit for the year - amount calculated in note 10 + retained earnings from trial balance
36
Note 5
Accounts receivable | Less allowance for doubtful debts
37
Note 6
Financial assets Balance at the beginning of the year Increase/decrease in fair value of financial assets Balance at the end of the year
38
What is written at the bottom of note 6
The financial assets comprise ... with a fair market value of ...
39
Note 7
``` PPE Opening carrying amount Additions Disposals Depreciation Revaluations Closing carrying amount ``` Cost or valuation Accumulated depreciation Closing carrying amount
40
What amount is used for cost or valuation in the PPE table?
The adjusted/revalued amount from trial balance
41
What must be remembered for buildings in PPE
Accumulated depreciation is 0
42
Note 8 (3)
Loan Secured over... Rate of interest Due for repayment
43
Note 9
``` Contributed equity Balance at ... Shares issued Shares repurchased Balance at ... ```
44
Note 10
``` Distributions Final dividend Interim dividend Total dividend Share repurchase Total distributions ```
45
What is written at the bottom of note 10? (5)
On (date) director's proposed a final dividend for (year) of (amount per share) totalling (amount) to be paid on (date)
46
What sections are in the cash flow?
Cash from operations Cash from investing Cash from financing
47
What are each of the cash flow sections split into?
Cash was provided from Cash was applied to Net cash inflow/outflow from (operating/investing/financing)
48
How is the last section of the cash flow structured?
Net increase/decrease in cash held Bank at start of the period Bank balance at end of period
49
Cash from operating; provided from
Accounts receivable | Other income
50
Cash from operating; applied to
Accounts payable Expenses paid Interest paid Tax paid
51
Accounts receivable
Last years + sales - bad debts - discount allowed - this years
52
Which amounts must be used for last/this years accounts receivable in the equation?
The amount in note 5, BEFORE allowance for doubtful debts is removed
53
Other income
Amount from income statement - accrued revenue from this year + accrued income from last year + income received in advance this year - income received in advance from last year
54
Purchases
COGS + inventory this year - inventory last year
55
Accounts payable
Last years + purchases - discount received - this years
56
Interest paid
Interest expense from income statement + last years accrued expenses - this years accrued expenses
57
Tax paid
Tax expense from income statement + last years tax payable - this years tax payable
58
Expenses paid
Add trial balance expenses + this years prepayments + last years accrued expenses - last years prepayment - this years accrued expenses
59
Cash from investing; provided from
Sale of non current asset
60
What amount is used for sale of non current asset
The sale amount or the carrying amount adjusted by gain/loss
61
Cash from investing; applied to
Purchase of non current asset
62
How do you know if a non current asset has been purchased?
Compare last years amount with this years amount; if the difference is the same as the revaluation amount there has not been a purchase If they're not the same, the difference is the amount used
63
How do you calculate the amount if a non current asset has been sold and purchased?
This years historical cost - (last years historical cost - historical cost of asset sold)
64
Cash from financing; provided from
Share issues | Loan/mortgage increase
65
How do you calculate the share issues amount for cash provided from financing?
Difference between this year and last years contributed equity
66
How do you calculate the increase in loan/mortgage amount for cash provided from financing?
The increase from last years to this years loan/mortgage
67
Cash from financing; applied to
Share repurchase Loan/mortgage repayment Dividends paid
68
How do you calculate the share repurchase amount for cash was applied to financing?
Number of shares x repurchase price
69
How do you calculate the loan/mortgage repayment amount for cash was applied to financing?
The decrease from last years to this years loan/mortgage
70
How do you calculate the dividends paid amount for cash was applied to financing? (if share repurchase has occurred)
Last years retained earnings + profit for the year - this years retained earnings balance ( - retained earnings portion of the share repurchase)
71
How do you calculate the retained earnings portion of the share repurchase to go into dividends paid?
Share repurchase amount - share sales amount

Level 3 Accounting (2 decks)

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