Unit 9 - HKAS 7 example (Revised)

Unit 9 - HKAS 7 example (Revised) - Illustrative Example on...

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Illustrative Example on HKAS 7: The John Company Balance Sheet as at 31 December 2007 2006 $ $ Assets Non-current assets – at cost* 12,150 11,000 Accumulated depreciation 5,100 4,500 7,050 6,500 Cash and bank balances** 1,100 1,000 Accounts receivable 1,650 1,500 Inventory 2,200 2,000 Total current assets 4,950 4,500 Total assets 12,000 11,000 Liabilities and Equity Accrued liabilities 880 800 Accounts payable 1,320 1,200 Notes payable 6,050 5,500 Total current liabilities 8,250 7,500 Long-term debt 1,602 2,000 Issued share capital 1,000 1,000 Retained earnings 1,148 500 Total liabilities and equity 12,000 11,000 * Assume no acquisition or disposal in the year of 2007. ** John made a 3-month fixed deposit of $500 in November 2007.
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Income Statement for the year Ending 31 Dec 2007 $ Sales 10,000 Cost of goods sold 6,000 Depreciation 600 Selling, general, and administrative expenses 1,000 Interest expense* 600 Profit before tax 1,800 Tax* 720 Profit after tax 1,080 * Assume all payments were made in the year of 2007. Required
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Unit 9 - HKAS 7 example (Revised) - Illustrative Example on...

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