6) The following transactions relate to Honda’s business:
1 May Purchase of goods for resale on credit $3000
2 May Honda injects long term capital into the business $5,600
3 May Payment of rent made $1,500
5 May Honda withdraws cash from the business $8,500
7 May Goods which had cost $8,000 were sold on credit 13,00
At the start of the week, the assets of the business were $29,400 and liabilities amounted to $18,700.
At the end of the week, what was the amount of Honda’s capital?
7) On 31 March 20X8 Baker Co revalued its property to $100,000. At the date of the revaluation, the asset was accounted for at a cost of $144,000, and had accumulated depreciation $54,000. The property had a useful life of 40 years from the date of purchase and no residual value.What amount of ‘excess depreciation’ could be transferred from revaluation surplus to retained earnings at 31 March 20X9 as a result of accounting for the revaluation?
8) On 1 January 20X9 Cedric Co revalued its property to $160,000. Up to the date of the revaluation, the asset had been accounted for at a cost of $150,000, and had accumulated depreciation $60,000. The property had a useful life of 50 years from the date of purchase and no residual value.What are the accounting entries required to record the property revaluation in the accounting records?
9) In accordance with IFRS Standards, in which TWO financial statements would you expect to find dividends paid?A. Statement of cash flows
B. Statement of financial position
C. Statement of profit or loss and other comprehensive income
D. Statement of changes in equity
10) Which of the following would decrease the revenue reserve?