Topic02 Questions - AF3110 Intermediate Accounting 1...

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1 AF3110 Intermediate Accounting 1 2009/10 Semester 2 Topic 2 Question 1 (Chapter 4 Q7) The trial balance of Good Fortune Limited as at 30 June 20X8 includes the following balance sheet accounts: (a) Inventory of raw materials $ 60,000 (b) Allowance for doubtful debts 5,000 (c) Current tax payable 30,000 (d) Cash 10,000 (e) Prepayments 12,000 (f) Inventory of finished goods 100,000 (g) Accounts payable 65,000 (h) Dividends payable 25,000 (i) Accrued liabilities 15,000 (j) Trade receivables 95,000 (k) Loan repayable 31 January 20X9 50,000 (l) Bank overdraft 70,000 Required: You are responsible for the preparation of the balance sheet as at 30 June 20X8 of Good Fortune Limited. Assume the company classifies assets and liabilities using the current/non-current basis. Prepare the current assets and current liabilities sections of the balance sheet, using the minimum line items permitted under HKAS1. Question 2 (Chapter 4 Q8) The trial balance of Prosperity Limited as at 30 June 20X8 includes the following accounts for its revenues, expenses, gains and losses: (a) Finance expenses $ 15,000 (b) Sales revenue 1,150,000 (c) Proceeds on sale of fixed assets 50,000 (d) Dividends received 10,000 (e) Cost of sales 790,000
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This note was uploaded on 10/20/2010 for the course AD abc123 taught by Professor Cat during the Summer '09 term at City University of Hong Kong.

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Topic02 Questions - AF3110 Intermediate Accounting 1...

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