TOPIC 7 - IAS 1

Ex 7.1 ( Statement of financial position)

A business has the following information:

2018 2019 2020

Beginning balance of assets €2,800 €3,360 X6
Beginning balance of liabilities 1,580 X3 €2,016
Beginning balance of owner’s equity X1 X4 2,100
Dividents paid 560 420 476
Owner contributed capital 504 448 500
Ending balance of owner’s equity X2 X5 1,596
Profit after tax 560 348 X7
Required: Calculate from X1 to X7.

2018 2019
Assets, January 1 €2,800 €3,360 X6
Liabilities, January 1 1,580 X3 €2,016
Equity, Jan. 1 X1 X4 2,100
Dividends 560 420 476
Increase in share capital–ordinary 504 448 500
Equity, Dec. 31 X2 X5 1,596
Net Income 560 348 X7

Required: Calculate X1 to X7.

Ex 7.2 (Income Statement)
A Co. had the following account balances:
Sales revenue € 180,000
Cost of goods sold 90,000
Salaries and wages expense 15,000
Depreciation expense 30,000
Dividend revenue 6,000
Utilities expense 12,000
Rent revenue 30,000
Interest expense 18,000
Sales returns 16,500
Advertising expense 19,500
Required: What amount would B report as income from operations in its income
statement?
Ex 7.3 (Income Statement)
Fill in the appropriate blanks for each of the independent situations below.
Company A Company B Company C
Sales revenue (a) ¥_______ ¥343,400 ¥540,000
Beginning inventory 52,600 (d) _______ 90,000
Net purchases 175,300 255,600 (g) _______
Ending inventory 52,200 108,000 63,000
Cost of goods sold (b) _______ (e) _______ 387,000
Gross profit 95,300 88,000 (h) _______
Operating expenses (c) _______ 50,000 48,000
Income before taxes 6,000 (f) _______ (i) _______
Ex 7.4 (Using information of Financal Statement)
A company's net accounts receivable were $600,000 at December 31, 2018 and $660,000
at December 31, 2019. Net cash sales for 2019 were $390,000. The accounts receivable
turnover for 2019 was 7.0.
Required: What were Perez's total net sales for 2019?

Ex 7.5 (Presenting information on financial statements)

Given the following account information for Leong Corporation, prepare a statement of
financial position in report form for the company as of December 31, 2019. All
accounts have normal balances. (note: the assets section shows the long assets. prior
term).

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