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Sales ¥1,050,000
Purchase discounts 18,000
Purchases 642,000
Loss on discontinued operations (net of tax) 28,000
Selling expenses 128,000
Cash 60,000
Accounts receivable 90,000
Share capital 200,000
Accumulated depreciation 180,000
Dividend revenue 8,000
Inventory, January 1, 2015 152,000
Inventory, December 31, 2015 125,000
Unearned service revenue 4,400
Accrued interest payable 1,000
Land 370,000
Patents 100,000
Retained earnings, January 1, 2015 290,000
Interest expense 17,000
General and administrative expenses 150,000
Dividends declared 29,000
Allowance for doubtful accounts 5,000
Notes payable (maturity 7/1/18) 200,000
Machinery and equipment 450,000
Materials and supplies 40,000
Accounts payable 60,000
The amount of income taxes applicable to ordinary income was ¥33,600, excluding the tax
effect of the discontinued operations loss which amounted to ¥12,000.
Case 2
Given the following account information for Leong Corporation, prepare a statement of
financial position in report form for the company as of December 31, 2015. All accounts have
normal balances.
Equipment ¥ 40,000
Interest Expense 2,400
Interest Payable 600
Retained Earnings ?
Dividends 50,400
Land 157,320
Inventory 102,000
2
Case 3
Selected financial statement information and additional data for Johnston Enterprises is
presented below. Prepare a statement of cash flows for the year ending December 31, 2016
Johnston Enterprises
Statement of Financial Position and Income Statement Data
December 31, December 31,
2016 2015
Property, Plant, and Equipment HK$1,241,000 HK$1,122,000
Less: Accumulated Depreciation (476,000) (442,000)
765,000 680,000
Current Assets:
Inventory 391,000 340,000
Accounts Receivable 238,000 306,000
Cash 153,000 119,000
Total Current Assets 782,000 765,000
Equity:
Share Capital–Ordinary HK$ 510,000 HK$ 467,500
Retained Earnings 374,000 340,000
Total Equity 884,000 807,500
Non-Current Liabilities:
Bonds Payable 340,000 391,000
Current Liabilities:
Accounts Payable 187,000 102,000
Notes Payable 51,000 68,000
Income Taxes Payable 85,000 76,500
Total Current Liabilities 323,000 246,500
3
Additional Information:
During the year, Johnston sold equipment with an original cost of HK$153,000 and
accumulated depreciation of HK$119,000 and purchased new equipment for HK$272,000.
Case 4
Download a 2017 Annual Report of PT Indofood Sukses Makmur Tbk.
Statement of Financial Position:
(a) Identify the classification of accounts and the order of presentation in the statement.
(b)What format (account form or report form) does the company use for its statement?
(c) What does it mean by consolidated financial statement?
(d) Why current maturities of long term debts are included in the current liabilities?
Is there any relationship between item (s) that is (are) presented in the statement of
comprehensive income, statement of financial position, statement of changes in equity and
statement cash flow?
Annual Report:
(a) What are others information that the company disclosed in the Annual Report, besides
financial statement?
(b) If you are an investor of the company, which part of information in the Annual Report
that you think is the most important? Explain it.
(c) If you are a lender of the company, which part of information in the Annual Report that
you think is the most important? Explain it.