1. Classify the following information into balance sheet and income statement formats.

Which of them is the common element ?

Cash 28912
Customers 756152
Finished goods 1244912
Prepaid expenses 76140
Income before tax 603331
Selling and administration expenses 1328107
Machinery at cost 1566268
Accumulated depreciation (723442)
Sales revenues 7622677
Goodwill 645210
VAT receivable 115826
Cost of sales 2803623
Suppliers 271452
Net income 328773
Short term debts 430776
Salaries payable 922990
Sundry creditors 880674
Excise taxes on sold goods 2887616
Shareholders’ capital 245714
Legal reserves 53641
Retained earnings 1692492
Income tax expense 274558
Gross margin 1931438
Land 1116534

2. For the following situation provide the accounting analyses, close the accounts and establish the final balance sheet:
ASSETS OWNERS’ EQUITY + LIABILITIES
Bank account 20000 Capital 35000
Buildings 40000 Suppliers 25000
Total assets 60000 Total OE + L 60000
Transactions occurred during current month:
a) Monthly depreciation is recorded for the building in value of 2000 mu.
b) Services are provided to the customers in value of 6000 mu, VAT 19%, the receipt in done after 3 days into the bank
account.
c) The capital is increased by new contributions in cash for 300 shares, nominal value 10 mu, issuing price 12 mu.

4) Compute and motivate:

A. You are given the following information:
Payable at 1 January 2008 $10,000
Payable at 31 December 2008 $ 13,000
Total payments during 2008 (from which $50,000 were not honored ceques ) $ 213,000
How much were the purchases during 2008?

B. Your firm bought a machinery for $ 40,000 on the 1 st of October 2008, which had an expected useful life of four years and
the asset was to be depreciated on the straight line basis. On the 30th of June 2009, the asset was sold for $33,000.
What are the changes to be entered in the 2008 financial statements because of this sale?

C. A business commenced with capital in cash of $10,000. Inventories costing $8,000 is purchased on credit, and half is sold for
$10,000, the customer paying in cash at once. Compute the final values in the balance sheet for the cash and for the paid capital.

D. Company ABC purchases a stock in December 2006 and pays the supplier in January 2007. the stock is sold to a client on
February the 2nd 2007 but delivered after 3 days and the money are received in cash after another 5 days. Which is the moment
when the company is recording the revenue? Motivate your answer.

E. What are the effects over the profit and loss for company Alfa which imported inventories for 5000 € at a rate of exchange of
1€ = 3.5 RON at December 18th 2006 and the currency value is 1 € = 3.3 RON at December 31st 2006?