a) Listed below are companies whose financial year ends are 31 December, 2008. The financial...
70.2K
Verified Solution
Link Copied!
Question
Accounting
a) Listed below are companies whose financial year ends are 31 December, 2008. The financial statements were approved by their respective directors on 31 March 2009. During 2009, the following material events took place:
On 5 January 2009, a large trade receivable of Alpha went into liquidation owing GHe100,000 as at the reporting period date. It is likely that this debtor balance will realise nothing.
Alpha sold a major property, which was included in the statement of financial position at GHe100,000 and for which contracts had been exchanged on 15
December 2008. The sale was completed on 15 February 2009 at a price of GHe250,000.
-in 28 February 2009, the mail order activities of Beta, a retail-trading group, were Shut down with closure costs amounting to GH&2.5million.
On I April 2009, the discovery of sand under Gamma's major civil engineering contract causes the costs of the contract to increase by 25% for which there would be no corresponding recovery from the customer
Required:
You are required to state, with reasons. whether each of the above items numbered (1) to (ivy are adjusting or non-adjusting events in the companies" financial statements for the year ended 31 December 2008.
a) Listed below are companies whose financial year ends are 31 December, 2008. The financial statements were approved by their respective directors on 31 March 2009. During 2009, the following material events took place:
On 5 January 2009, a large trade receivable of Alpha went into liquidation owing GHe100,000 as at the reporting period date. It is likely that this debtor balance will realise nothing.
Alpha sold a major property, which was included in the statement of financial position at GHe100,000 and for which contracts had been exchanged on 15
December 2008. The sale was completed on 15 February 2009 at a price of GHe250,000.
-in 28 February 2009, the mail order activities of Beta, a retail-trading group, were Shut down with closure costs amounting to GH&2.5million.
On I April 2009, the discovery of sand under Gamma's major civil engineering contract causes the costs of the contract to increase by 25% for which there would be no corresponding recovery from the customer
Required:
You are required to state, with reasons. whether each of the above items numbered (1) to (ivy are adjusting or non-adjusting events in the companies" financial statements for the year ended 31 December 2008.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.