Principles of Accounting BAP 11 Assignment 2,

Principles of Accounting
BAP 11
Assignment 2, 2013

Semester 2
Class
Day/Time: ________________

Due Date: Week 11 Friday

Time: 5 PM

Weight: 15%

This is an individual assignment.
The assignment consists of 5 questions all of which are to be attempted. Each
question is worth 15 marks.
Question 1.
The following questions are required to be
answered relate to the course text
Questions
a) Statement of Cash flows direct method Chapter 18
;

Required

i.
Prepare a cash flow statement
using the direct method for operating cash flows

ii.
Prepare a reconciliation of
the [profit and cash provided by the operations
b) Bank
reconciliation

Note:
Cheque no 216 was also incorrectly posted to the general ledger.
Required prepare a bank reconciliation for the
Month ended the 31 March
c) Accounting
for Shares
Demons
Ltd issued a prospectus for the issue of 100,000 $5.00 shares on 1 January2012.The
prospectus required payment of $3.00 per share on application and $2.00 to be
paid when called.
The
company received applications for 120,000 shares by the closing date of
28February 2012.100,000 shares were issued on 1 March 2012 with excess application
money being refunded.
On 30
April 2012 the company called the balance of $2.00 on the shares. All call
money was received by 15 May 2012.On 30 June 2012 Demons Ltd declared and paid
a dividend of 5 cents per share.
Required:
Prepare
the journal entries for the year ended 30 June 2012 to account for the above
transactions.

d) Accounting
for Liabilities
Easy
Company Ltd issues a debenture at a premium for a period of 10 years the
company pays interest on 31 December and 1 July. The debenture has a par value
of $1,000,000.00 and is issued at premium of 105 at an interest rate of 9%
Prepare
journal entries to reflect the following;

i.
issue of debentures on 1-Jul

ii.
payment of interest on 1
January

iii.
accrual on 31 March

e) Accounting
for Inventory