accounting manager

Assignment #1 Question One: Depreciation & CCA (10 MARKS) Information: Cost of the asset $100,000 Life of the asset 5 years Depreciation rate 20% Capital cost allowance rate 50% Residual value of the asset nil Income tax rate 50% a) Based on the above information, calculate the amount of depreciation expense and Net Book Value for the 5-year period using the straight-line method. b) Based on the above information, calculate the amount of Capital Cost Allowance and Undepreciated Capital Cost for each of the 5 years. Question #2: Financial Statement Preparation (15 marks) Trade and other payable $ 80,000 Trade receivables 150,000 Accrued expenses 100,000 Accumulated depreciation 550,000 Administrative expenses 250,000 Plant, property and equipment 2,350,000 Share capital 930,000 Cash 525,000 Cost of sales 3,000,000 Depreciation Expense 55,000 Dividends 50,000 Income tax expense 170,000 Intangible assets 165,000 Inventories 450,000 Long-term borrowings 610,000 Marketable securities 60,000 Other expenses 55,000 Other income 40,000 Prepaid expenses 30,000 Revenue 4,000,000 Distribution costs 250,000 Retained earnings (at Oct 31/09) 1,000,000 Short-term borrowings $ 250,000 Using the ledger account balances above for Aboni Electronics Ltd as at October 31, 2010 , prepare the following: a) Statement of Comprehensive Income; b) Statement of Financial Position c) Statement of Retained Earnings Question Three: Statement of Changes in Cash (15 Marks) This Year Last Year Trade receivables $ 350,000 $ 300,000 Inventories 400,000 350,000 Buildings 700,000 600,000 Long-term borrowings 400,000 300,000 Payment of dividends 50,000 50,000 Equipment 100,000 75,000 Beginning cash balance ? 25,000 Profit for the year $ 150,000 $ 140,000 Based on the above, calculate the following: a) the changes in cash in non-cash working capital accounts. b) Change in Cash from Investing activities c) Net change in cash from financing activities. d) Net change in cash from operating activities e) Ending cash bank balance for the year Question Four: Sale of Depreciable Asset (5 Marks) A company bought a machine on July 1, 2009, for $50,000. At that date, it was estimated to have a useful life of five years and a residual value of $5,000 at the end of its useful life. On December 31, 2012, the company sold the machine for $25,000. How will this sale be accounted for in the company’s financial statements?