Financial Accounting Paper Wajeeha

NAME SYEDA WAJEEHA SHAMSHAD
REGISTRATION NO 51655
Answer No: 1 (a)
ZETIX CORPORATION
CALCULATION OF CASH PAYMENT
AS ON 31 DECEMBER- TWO CALENDAR YEARS
Amount borrowed $20,000

Tenure 1 year
Interest Rate 10 percent
Interest payment Quarterly
Year ends on 31 December
Borrowing Date March 1
Interest = 20,000 x 10% = 2,000
Year 1:
2,000 x 10/12 = 1,667
Cash payment Zetix required to pay at first year is equal to 1,667 which is affected by note
payable
Year 2:
On march 1 note was repaid
Note payment 20,000
Interest (2,000 x 2/12) 333
Total 20,333
Cash payment Zetix required to pay at second year is equal to 20,333 which is affected by note
payable
(b)
GLEN POOL CLUB INC

PARTIAL AMORTIZATION TABLE
MONTHL INTEREST REDUCTI
Y EXPENSE @ ON IN
MONT PAYMEN 1% UNPAID BALAN
H T MONTHLY BALANCE CE
$300,000
1 3,000 3,000 0 300,000
2 3,000 3,000 0 300,000

Answer 2 (a)
FV COMPANY
GENERAL JOURNAL
DECLARATION & PAYMENT OF DIVIDEND
CREDI
DATE PARTICULARS P/R DEBIT T
15-12- Dividend( 5% preferred &
12 Common) 33,250
Dividend Payable 33,250
To record declaration of dividend

04-01-
13 Dividend Payable 33,250
Cash 33,250
To record payment of dividend

(b)
PARTLOW COMPANY
1) The preferred shares are cumulative because in 2011 and 2012 the company declared but not
paid so the company has to pay in 2013 as it declared cash dividend. It does mean that company
is in a capacity of paying cash to the shareholders.
2)
PARTLOW COMPANY
CALCULATION OF DISTRIBUTION OF DIVIDEND
BETWEEN COMMON AND PREFERRED STOCK
Dividend Declared 30,000

Distribution to preferred stock 5% (82,500x5%) (4,125)
Distribution to common stock (1,200,000 shares) 25,875
3)
Dividend Declared 45,000
Distribution to preferred stock 5% (82,500x5%) (4,125)
Dividend in arrear (for 2011 and 2012, 4,125 x 2) (8,250)
Distribution to common stock 32,625
Answer 3 (a)
WIRELESS INC
CALCULATION OF BOOK VALUE PER SHARE
OF THE COMMON STOCK
Total Shareholder’s equity 276,000

Less: 9% preferred stock capital (26,000)
Less: Preferred dividend paid (2,6000 x 9%) (2,340)
---------
247,660
Common stock issued and outstanding 5300
Book Value per common share (247,660/5300) = 47 per share
Answer 4 (a)
MARYLAND
PARTIAL BALANCE SHEET
AS ON DEC-31, 2012
LIABILITIES AND AMOUN AMOUN
SHAREHOLDER'S EQUITY T T

Shareholder's Equity
Common Stock ($1 44,000
shares) 44,000
Additional Paid-in capital (10 per
share) 440,000
Retained Earnings (N1) 148,000

Total Share holder's equity 632,000

Note 1:
Calculation of net retained earning
2009: Net Losses -47,000
2010: Net Losses -15,000
2011: Net Profit 32,000
2012: Net Profit 178,000
Net Retained earnings as on 31,
Dec,12 148,000

(b)
GARPONE'S CHARTER
PARTIAL BALANCE SHEET
AS ON DEC-31, 2012
LIABILITIES AND AMOUN AMOUN
SHAREHOLDER'S EQUITY T T

Shareholder's Equity
5% Preferred Stock (1400 @ 14 par) 19,600
Common Stock (130,000 @ 2 par) 260,000
Retained Earnings (N1) 156,040

Total Share holder's equity 435,640

Note 1:
Calculation of net retained earning
Opening Balance 60,000
Add: Income of the year 98,000
Total retained earnings 158,000
Less: Preferred dividend declared
(19,600 x 5%) -980
Less: Dividend in arrears for 2011 (980) -980
Net retained earnings as on 31 Dec-
2012 156,040

Answer 5 (a)
Operating Activities:
Cash Receipts:
Interest received on loan given
Cash received against sale
Cash Payment:
Paid salaries
Paid for advertisement
Investing Activities:
Cash Receipts:
Cash received against sale of security
Cash received against sale of plant
Cash Payments:
Paid for acquiring plant
Paid for purchase of security
Financing activities:
Cash Receipts:
Proceed from short term borrowing
Issued a note for borrowing cash
Cash Payment:
Repaid loan
Paid note payable
(b)
WYOMING OUTFITTERS INC

CASH FLOW STATEMENT
AS ON DECEMBER 31, 2011

Cash flow from Operating Activities
Interest and dividend received 27,000
Cash received from customers 795,000
Cash provided by operating activities 822,000
Dividend Paid (55,000)
(635,000
Cash paid to Suppliers and Employees )
Interest Paid (19,000)
Income taxes paid (71,000)
Cash disbursement from operating (780000
activities )
Net cash flow from operating activities 42,000

Cash flow from Investing Activities
Proceeds from sales of plant assets 9,000
Cash provided by investing activities 9,000
Cash paid to acquire plant assets (21,000)
Cash disbursement by investing activities (21,000)
Net cash flow from investing activities (12,000)

Cash flow from Financing Activities
Proceeds from short term borrowing 10,000
Collection on loans (excluding interest) 4,000
Cash provided by financing activities 14,000
Loan made to borrowers (5,000)
Cash disbursement by financing activites (5,000)
Net cash flow by financing activities 9,000
Net increase in Cash 39,000
Cash and cash equivalent as on Jan,1 35,000
Cash and cash equivalent as on Dec-31 74,800

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NAME SYEDA WAJEEHA SHAMSHAD

Answer No: 1 (a)

Amount borrowed $20,000

Interest = 20,000 x 10% = 2,000

GLEN POOL CLUB INC

Dividend Declared 30,000

Total Shareholder’s equity 276,000

WYOMING OUTFITTERS INC

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