- Question 1 31 Marks On 30 April 2020 Emilia Ltd Had These Balances In Their Records 700 000 300 000 45 000 150 000 O 1 (91.58 KiB) Viewed 97 times
- Question 1 31 Marks On 30 April 2020 Emilia Ltd Had These Balances In Their Records 700 000 300 000 45 000 150 000 O 2 (53.18 KiB) Viewed 97 times
QUESTION THEY GAVE ME THIS ANSWER WHICH IS VERY DIFFRENT FROM WHAT
IS BEING ASKED. PLEASE READ THE QUESTION VERY CAREFULL AND PROVIDE
THE GENERAL JOURNAL AND STATEMENT OF CHANGES IN EQUITY WHICH IS
BEING ASKED. I AM KINDLY ASKING YOU NAT TO GIVE ME THE ANSWER
BELOW
a.1
Return on sale of Omni Technology
Return on sales = Net income / sales
Software return on sales = $2,052,000 / $40,720,000
=0.050 or 5 %
Personal computer
Return on sales = $2,450,000 / $60,440,000
=0.40 or 4 % (approx)
Foreign operations
Return on sales = $8,430,000 / $100,780,000
= 0.08 or 8% (approx)
a-2
Highest return on sales is foreign operations
Option - B
b
Return on assets = Net income / Total Assets
Software
Software return on assets = $2,052,000 / $5,570,000
=0.36
Personal computer
Return on assets = $2,450,000 / $25,570,000
=0.095 (approx)
Foreign operations
Return on assets = $8,430,000 / $60,740,000
= 0.13 (approx)
Least return on assets is Personal computers
b-2 option A personal computers
AS per answers guideliness we cant solve more than 2 sub questions
try to understand but i help you by giving formulas like this you
calculate
C. Asset turnover ratio = Net sales / Average total
assets
D. Return on stock holders equity = Net income / stock
holders equity
E.Debt ratio = Total liabilities / Total
Assets
Thank you if any doubt ask me i will help you try to
understand
QUESTION 1 (31 Marks) On 30 April 2020, Emilia Ltd had these balances in their records: 700 000 300 000 45 000 150 000 ordinary shares at no par value 5% Redeemable cumulative preference shares at N$2,00 each Share premium account Capital redemption reserve fund Retained earnings Bank overdraft Preliminary expenses Dividend Payable Underwriters' commission (on ordinary shares) Inventory Property Equipment Accounts receivables Accounts Payables 50 000 258 000 105 350 15 000 15 000 20 000 26 350 1 450 000 755 600 545 650 368 000 . The authorised share capital of the company is: • 250 000 ordinary shares at no par value. • 200 000 5% redeemable cumulative preference shares @ N$2,00 each. • 150 000 8% redeemable preference shares at N$2,00 each. The directors have the power to issue un-issued shares and both redeemable preference shares are redeemed at the option of the company. On 15 May 2020, at a meeting of the directors of Emilia Ltd it was decided that on 01 July 2020, to redeem the 5% redeemable cumulative preference shares at a 10% premium and finance this redemption as follows: 1. A fresh issue of 100 000 8% redeemable preference shares at an issue price at N$2,25/share. This offer was over-subscribed by one and a half Page 21 of 25
times with unsuccessful applicants being refunded. 2. The balance is to be provided for out of retained earnings. Additional information: (1) Dividend pertaining to preference shareholders have not been paid since 30 April 2019, as the company incurred operating losses up to the commencement of the present financial year. () To write off all preliminary expenditure and underwriters' commission in the Accounting records immediately after the issue of the 8% redeemable preference shares. (ii) Expenses related to the share issue amount to N$7 000 and premium on redemption were to be written off to share premium. (iv) Profit for the period is N$ 950 650. (v) Income tax is payable at 30%. You are required to: 1.1 Prepare the General Journal entries for Emilia Ltd to record the above transactions. (Narrations are not required.) (17 Marks) 1.2 Prepare the statement of changes in equity for the year ended 30 April 2021. (14 Marks)