question archive QUESTIONS An increase in the allowance for credit losses at the end of the entity's financial year is recorded in the general journal by A
QUESTIONS An increase in the allowance for credit losses at the end of the entity's financial year is recorded in the general journal by A
Subject:BusinessPrice: Bought3
QUESTIONS An increase in the allowance for credit losses at the end of the entity's financial year is recorded in the general journal by A. Debiting the credit losses and crediting the allowance for credit losses B. Debiting the allowance for credit losses and debiting the credit losses, C. Debiting the credit losses and crediting bank D. Debiting the credit losses and crediting the trade receivables account Reset Selection . O . Question 9 of 10 25 Points QUESTION 9 Rent expense paid in advance by an entity at the end of the entity's financial year is recorded in the financial statement as . A. Equity in the statement of changes in equity B. Prepayments in the current assets section of the statement of financial position C. An expense in the statement of profit or loss and other comprehensive income D. Prepayments in the non-current section of the statement of financial position o Reset Selection Question 10 of 10 25 Points QUESTION 10 An invoice received at year end for delivery expenses of purchases delivered on the last day of the financial year is recorded in the general journal at year end by . 0 . A. Debiting the inventory account and crediting the cost of sales account B. Debiting the cost of sales account and crediting inventory account C. Debiting the inventory account and crediting trade payables account D. Debiting the delivery expenses account and crediting the trade payablos account Reset Selection . . 20.20 R 228 300 217 300 37 400 110 000 341 000 192 700 65 000 83 300 ine information below rejates to questions 7 - 17 The following information pertains to Dolly Limited. 1. Extract from ledger account balances as at 28 February: 20.21 R Share capital Ordinary shares 280 500 Share capital : Preference shares 231 000 Retained earnings 46 200 Long-term loan - ABC Bank 77 000 Land and buildings at cost 363 000 Machinery and equipment at carrying amount 202 300 Inventory 73 500 Trade receivables control 92 700 Listed investments 130 000 Bank 15 200 Trade payables control 56 500 SARS (income tax) 55 400 Dividends payable 36 200 Dividends receivable 25 200 Accrued expenses (wages) 15 900 Prepaid expenses 9 100 Revenue 785 400 Cost of sales 371 900 Administrative, distribution and other expenses 140 200 Fair value gain on listed investments 6 400 Dividends income 16 800 Loss on sale of machinery and equipment 8 100 Income tax expense 47 200 Depreciation 12 500 Wages 73 400 Insurance expense 10 100 26 300 53 600 37 700 32 000 21 000 11 400 3 200 2. Additional information 2.1 The following pertains to property, plant and equipment: 2.1.1 During the year machinery and equipment with a carrying amount of R35 000 was sold. This transaction has been correctly recorded. 2.1 The following pertains to property, plant and equipment: 2.1.1 During the year machinery and equipment with a carrying amount of R35 000 was sold. This transaction has been correctly recorded. 2.1.2 Land and buildings with a cost price of R50 000 were sold for cash at the same amount. Land and buildings are not depreciated. 2.1.3 All purchases of property, plant and equipment pertained to replacements and were paid in full. 2.2 On 29 February 20.21 Dolly Limited declared ordinary shares dividend of 38 cents per share whilst the preference share dividends amounted to R20 800 2.3 The interest expense on the long-term loan amounted to R8 500 and was added in the administrative, distribution and other expenses amount above. 24 On 31 August 20,20, when the total number of ordinary shares issued were 120 000 shares, the shareholders approved the capitalisation issue of one (1) ordinary share for every four (4) ordinary shares held. The capitalisation issue was done from retained earnings at R0,50 per share. All other issued shares were paid for in cash QUESTION 1 Which of the following alternatives represents the correct amount that must be disclosed as cash receipts from customers in the cash generated from operations section according to direct method in the statement cash flows of Dolly Limited for the year ended 28 February 20.21? . A. 686 000 B. 887 600 C. 695 000 . D. 877 800 . E. 776 000 F. 785 400
