2015 ANNUAL REPORT
Australian Grand Prix Corporation
Annual Report 2015
Report of Operations
1. Report of the Chairman
2. General Information
Functions and Objectives
Identify each of the following as an (1) increase in owner's equity, or a (2) decrease in owner's
Lawn Care Revenue
Investment on January 1, 2011
Net income for three months
Increase in owner's equity
Eric Wood, capital, March 31, 2011
Eric Wood, CPA
March 31, 2011
Given the following:
Owner's withdrawals $ 21,000
Calculate net income or net loss.
Decrease in capital
Less: Owner's withdrawals
Profit is the difference between
A. assets and liabilities
B. the incoming cash and outgoing cash
C. the assets purchased with cash contributed by the owner and the cash spent to operate the
D. the amounts received from customers for goods or
Company G has a ratio of liabilities to stockholders equity of 0.12 and 0.28 for 2010 and 2011,
respectively. In contrast, Company M has a ratio of liabilities to stockholders equity of 1.13 and
1.29 for the same period.
Based on this infor
A financial statement user would determine if a company was profitable or not during a specific
period of time by reviewing
A. the Income Statement.
B. the Balance Sheet.
C. the Statement of Cash Flows.
D. cannot be determined.
If the owner want
Selected transaction data of a business for September are summarized below. Determine the
following amounts for September: (a) total revenue, (b) total expenses, (c) net income.
Service sales charged to customers on account during
Indicate how the following transactions affect the accounting equation:
(a) The purchase of supplies on account.
(b) The purchase of supplies for cash.
(c) A withdraw by the owner to pay personal expenses.
(d) Revenues received in cash.
Within the United States, the dominant body in the primary development of accounting
principles is the
A. American Institute of Certified Public Accountants (AICPA)
B. American Accounting Association (AAA)
C. Financial Accounting Standards Board (FASB
Donner Company is selling a piece of land adjacent to their business. An appraisal reported the
market value of the land to be $120,000. The Focus Company initially offered to buy the land
for $107,000. The companies settled on a purchase price of $1
Solutions to Self-Study Questions for Tutorial 6 (chapter 8)
SOLUTIONS FROM CHAPTER 8
The following points explain the application of the cost principle in determining the acquisition of
1. Under the cost pri
What are the three sections of the Statement of Cash Flows?
Operating Activities, Investing Activities, and the Financing Activities
Match the following accounts to the financial statement where they can be found. (Hint: Some
of the accounts can
1. Prepare the income statement for year 2 and the balance sheet at the end of year 2 for
P.V. Ltd. in Example 2.1 under the assumption that P.V. Ltd. pays no dividends.
2. Show that an owner of P.V. Ltd. in Example 2.1 would not care whether P.V. Ltd. pa
The assets and liabilities of Amos Moving Services at March 31, 2011, the end of the current
year, and its revenue and expenses for the year are listed below. The capital of the owner was
$180,000 at April 1, 2010, the beginning of the current year.
195.The accountant for Flagger Company prepared the following list of
account balances from the companys records for the year ended
December 31, 2011:
The assets and liabilities of the company are $175,000 and $40,000, respectively. Owners
equity should equal
If total liabilities decreased by $55,000 during a period of time and owner's equity increa
A/P + 220
From the following list of accounts taken from Lamars accounting records, identify those that
would appear on the Income Statement.
For the Month Ended April 30, 2011
Cash flows from operating activities:
Cash received from customers
Deduct cash payments for expenses and payments to
Net cash flow from operating activities
Cash flows from investing acti
193.Using the following accounts and their amounts, prepare in good format a
Balance Sheet for Bright Futures Company, month ended August 31,
Jason Bright, Drawing
The assets and liabilities of S&P Day Spa at December 31, 2011 and its revenue and expenses
for the year are listed below. The capital of the owner was $68,000 at January 1, 2011. The
owner invested an additional $10,000 during the year.
Fees Earned 2,565
Use the accounting equation to answer each of the independent questions bel
On April 25, Gregg Repair Service extended an offer of $115,000 for land that had been priced
for sale at $140,000. On May 3, Gregg Repair Service accepted the sellers counteroffer of
$127,000. On June 20, the land was assessed at a value of $88,000 f
Land, originally purchased for $20,000, is sold for $75,000 in cash. What is the effect of the
sale on the accounting equation?
A. assets increase $75,000; owner's equity increases $75,000
B. assets increase $55,000; owner's equity increases $55,000
Solutions to Self-Study Questions for Tutorial 3 (chapter 3 & 13)
SOLUTIONS FROM CHAPTER 3
The accounting principles and the qualitative characteristics, together with accounting standards, are
collectively referred to as Australian generally
Solutions to Self-Study Questions for Tutorial 2 (chapter 2)
The accounting records contain details of transactions and events that impact on the enterprise.
No, the death of a major shareholder of the company is not an accounting transact
ACC/ACF2100 Financial Accounting
Topic 10 Earnings Per Share: Lecture Examples
Example 1: Determination of Earnings (p. 754)
Poulos Ltd has 100 000 Class A preference shares on issue each carrying a non-cumulative
dividend right of 3% of the $1 par value