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W2-MAKSI UBAYA GN 2018/2019
Case 1
Wang Corporation's capital structure consists of 40,000 ordinary shares. At December 31, 2015
an analysis of the accounts and discussions with company officials revealed the following

Sales ¥1,050,000
Purchase discounts 18,000
Purchases 642,000
Loss on discontinued operations (net of tax) 28,000
Selling expenses 128,000
Cash 60,000
Accounts receivable 90,000
Share capital 200,000
Accumulated depreciation 180,000
Dividend revenue 8,000
Inventory, January 1, 2015 152,000
Inventory, December 31, 2015 125,000
Unearned service revenue 4,400
Accrued interest payable 1,000
Land 370,000
Patents 100,000
Retained earnings, January 1, 2015 290,000
Interest expense 17,000
General and administrative expenses 150,000
Dividends declared 29,000
Allowance for doubtful accounts 5,000
Notes payable (maturity 7/1/18) 200,000
Machinery and equipment 450,000
Materials and supplies 40,000
Accounts payable 60,000

The amount of income taxes applicable to ordinary income was ¥33,600, excluding the tax
effect of the discontinued operations loss which amounted to ¥12,000.

Instructions: Prepare an income statement.

Case 2
Given the following account information for Leong Corporation, prepare a statement of
financial position in report form for the company as of December 31, 2015. All accounts have
normal balances.

Equipment ¥ 40,000
Interest Expense 2,400
Interest Payable 600
Retained Earnings ?
Dividends 50,400
Land 157,320
Inventory 102,000

Bonds Payable 78,000

Notes Payable (due in 6 months) 24,400
Share Capital–Ordinary 60,000
Accumulated Depreciation - Equip. 10,000
Prepaid Advertising 5,000
Revenue 351,400
Buildings 80,400
Supplies 1,860
Taxes Payable 3,000
Utilities Expense 1,320
Advertising Expense 1,560
Salaries and Wages Expense 53,040
Salaries and Wages Payable 900
Accumulated Depr. - Buildings 15,000
Cash 40,000
Depreciation Expense 8,000

Case 3
Selected financial statement information and additional data for Johnston Enterprises is
presented below. Prepare a statement of cash flows for the year ending December 31, 2016

Johnston Enterprises
Statement of Financial Position and Income Statement Data
December 31, December 31,
2016 2015
Property, Plant, and Equipment HK$1,241,000 HK$1,122,000
Less: Accumulated Depreciation (476,000) (442,000)
765,000 680,000
Current Assets:
Inventory 391,000 340,000
Accounts Receivable 238,000 306,000
Cash 153,000 119,000
Total Current Assets 782,000 765,000

Total Assets HK$1,547,000 HK$1,445,000

Share Capital–Ordinary HK$ 510,000 HK$ 467,500
Retained Earnings 374,000 340,000
Total Equity 884,000 807,500

Non-Current Liabilities:
Bonds Payable 340,000 391,000

Current Liabilities:
Accounts Payable 187,000 102,000
Notes Payable 51,000 68,000
Income Taxes Payable 85,000 76,500
Total Current Liabilities 323,000 246,500

Total Liabilities 663,000 637,500

Total Liabilities & Equity HK$1,547,000 HK$1,445,000

Sales Revenue HK$1,615,000 HK$1,513,000

Less Cost of Goods Sold 731,000 731,000
Gross Profit 884,000 782,000
Depreciation Expense 153,000 136,000
Salaries and Wages Expense 391,000 357,000
Interest Expense 34,000 34,000
Loss on Sale of Equipment 17,000 0
Income Before Taxes 289,000 255,000
Less Income Tax Expense 119,000 102,000
Net Income HK$ 170,000 HK$ 153,000

Additional Information:
During the year, Johnston sold equipment with an original cost of HK$153,000 and
accumulated depreciation of HK$119,000 and purchased new equipment for HK$272,000.

Case 4
Download a 2017 Annual Report of PT Indofood Sukses Makmur Tbk.
Statement of Financial Position:
(a) Identify the classification of accounts and the order of presentation in the statement.
(b)What format (account form or report form) does the company use for its statement?
(c) What does it mean by consolidated financial statement?
(d) Why current maturities of long term debts are included in the current liabilities?

Statement of Profit or Loss and Other Comprehensive Income:

(a) Did the company use single statement or two statement approach for income statement and
comprehensive income?
(b)What type of income statement did the company use? (single step or multiple step)
(c) What items did include in the operating sections?
(d)Did the company classify the expense by nature or by function?
(e) What items did the company include in the non-operating section?
(f) What items did company include in the comprehensive income?
(g) At the end of the statement there is Earnings per share. Explain it.

Statement of Cash Flows:

(a) Identify the classification in the statement.
(b)What did the company include in the cash equivalents?
(c) What method did the company use for presentation of each major classification in the cash
flow statement? (Direct/indirect method).
(d)What item did the company disclose in the non-cash transaction? Why?

Statement of Changes in Equity:

(a) Identify the component of statement.

Is there any relationship between item (s) that is (are) presented in the statement of
comprehensive income, statement of financial position, statement of changes in equity and
statement cash flow?

Notes to the financial statements:

(a) Identify different information that are explained in the General and Summary of
significant accounting policies?
(b) Why did the company need to explain about significant accounting judgment, estimates,
and assumption?
(c) Did the company report any related party transaction, contingency, subsequent events?
Explain it.
(d) What is the diferrent between information in financial statement and in segment
information? How many segments did the company report?

Annual Report:
(a) What are others information that the company disclosed in the Annual Report, besides
financial statement?
(b) If you are an investor of the company, which part of information in the Annual Report
that you think is the most important? Explain it.
(c) If you are a lender of the company, which part of information in the Annual Report that
you think is the most important? Explain it.

Download an interim report of Quater II year 2018 of PT Indofood Sukses Makmur

What are the differences between Financial Statements in Annual Report 2017 and Financial
Statemens in Interim Report – Quarter II 2018?

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