inter accounting

ASSIGNMENT1-10.docx

Individual Assignment 1 (10%)

To be completed by the student

Grading Scheme

Question 1. Essay question (20 points)

Define the items that are reported in a Statement of Financial Position. List the main sub-classifications for non-current assets and equity.

Question 2. (80 points)

Assume that Company ABC uses the following headings on its statement of financial position

a. Investments.	g. Current liabilities.
b. Property, plant, and equipment.	h. Share capital.
c. Intangible assets.	i. Share premium.
d. Other assets.	j. Retained earnings.
e. Current assets.	k. Accumulated other comprehensive income.
f. Non-current liabilities.

Required

b) Justify (explain) your answer for items no 2, 11, 12 and 13. (20 points)

	1.	Notes receivable.
	2.	Accumulated depreciation—Buildings.
	3.	Cash.
	4.	Salaries payable.
	5.	Interest receivable.
	6.	Inventory.
	7.	Prepaid rent.
	8.	Land.
	9.	Share capital—preference.
	10.	Share premium—preference.
	11.	Shares owned in associate companies.
	12.	Goodwill.
	13.	Twenty-year bonds payable that will mature within the next year.
	14.	Unearned service revenues.
	15.	Unrealized gain on non-trading equity securities.

ACT 410- Intermediate Accounting I – Spring 2020 Page 3 | 3