CLO 6: Gencrate balance sheet, statement of chanses in equity and statement of i
ID: 2562622 • Letter: C
Question
CLO 6: Gencrate balance sheet, statement of chanses in equity and statement of inseme Q 3) The accounting report columns of the worksheet for The Hikma Pharmaceuticals Pl.C in Dubai at June 31,2018, are as follows THE HIKMA PHARMACEUTICALS PLC Worksheet For the Year Ended June 31, 2018 Statement of Accounts DebitCreditDeitCredit Cash 10,000 7,000 4,000 6,000 219.000 Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation--Equipment Accounts Payable Note Payable Salaries and Wages Payable Share Capital-Ordinary Retained Earnings Dividends Service Revenue Advertising Expense Depreciation Expense Insurance Expense Rent Expense 29,000 19,000 60,000 13,000 50,000 62,000 9,000 123,000 21,000 12,000 3,000 17,000 42,000 Salaries and Wages Expense Supplies Expense 101, 00 12,000 255.000 233,000 12.00030 300 5,00 Totals Net IncomeExplanation / Answer
(a).
Statement of Retained Earnings
Beginning retained earnings
$62000
+ Net income
$22000
- Dividends
($9000)
Ending retained earnings
$75000
(b).
Classified Balance Sheet
ASSETS
Current Assets;
Cash
$10000
Accounts receivable
$7000
Supplies
$4000
Prepaid insurance
$6000
Total current assets
$27000
Fixed assets (Non-current assets);
Equipment
$219000
Accumulated depreciation - equipment
($29000)
Total fixed assets (Non-current assets)
$190000
Total assets
$217000
LIABILITIES and EQUITY;
Current liabilities;
Accounts payable
$19000
Note payable
$60000
Salaries and wages payable
$13000
Total current liabilities
$92000
Long-term liabilities
Nil
Share capital ordinary
$50000
Retained earnings
$75000
Total owners’ equity
$125000
Total liabilities and Equity
$217000
Statement of Retained Earnings
Beginning retained earnings
$62000
+ Net income
$22000
- Dividends
($9000)
Ending retained earnings
$75000