Financial reporting I Final exam

Question 1:
Use the following balance sheet to prepare cash flow statement for 2012:
Assets 2011 2012 Liabilities & Equity 2011 2012
Current assets:
Inventory
Accounts receivable
Cash
Non-current assets:
Land
Equipment
Less: Accumulated
depreciation

3000
7000
1500

3500
6500
(1500)

4000
6000
1000

2000
14000
(2000)
Liabilities:
Long term loans
Current liabilities:
Accounts payable
Salaries payable
Owner's Equity:
Capital
Reserves & retained earnings
Net income

6500

5000
700

5500
1400
900

5900

8000
1000

7000
2100
1000
Total 20000 25000 Total 20000 25000
There is capital loss on sale of land = LE 100 (the land sold for 1400 while the book value was 1500)
The profit distributed (cash dividend) during 2012 = LE 200
The equipment purchased for 7500 cash
The depreciation expense 500
Net income before tax 1000

Question 2:
(A) Prepare balance sheet as of December 31, 2012 which shows working capital using the
following data (in millions):
Current assets 8000 - Current liabilities 5000 Long-term assets 7000 Owners' equity??
Long-term liabilities 4000
(B) Prepare the income statement for the year ended December 31, 2012 using the following data
(in millions):
Sales 80 tax 4 other expenses and losses 3 cost of goods sold 50 other revenue and
gains 7 - Operating expenses 18 - number of stock 100.

Question 3:
(A) Record the following transactions and show the effect on income statement and balance
sheet on December 31, 2009:
1- On October 1, 2009, XYZ Bank bought LE 90.000 of trading securities, and LE
40.000 available for sale securities.
2- On November 1, 2009, XYZ Bank sold LE30.000 trading securities for LE 35,000.
3- On December 31, 2009, the market value of the remaining trading securities is LE
57,000, and the market value of available for sale is LE 44.000.
4- ABC Company purchased $200.000 of 8 percent bonds of Coca Corporation on
January 1, 2006 (held to maturity). The bonds mature January 1, 2011; interest is
payable each July 1 and December 31.
(B) ABC Co. issued 20.000 8% bonds at face value $10 at January 1, 2008; the bonds
mature at January 1, 2013. The interest is due each December 31. Prepare the journal
entries to record the issuing and redeeming the bonds and to record the bond's interest
at December 31, 2008, then show the impact on income statement and balance sheet at
December 31, 2008.

Question 4: Determine whether each of the following statements is true or false and correct the false
statements:
1- The objective of IAS 8 is to prescribe the minimum content of an interim financial report and
to prescribe the principles for recognition and measurement in financial statements presented
for an interim period.
2- Interim period: A financial reporting period shorter than a full financial year (most typically a
quarter or half-year).
3- The annual financial statements contain either a complete or condensed set of financial
statements for a period shorter than full year.
4- Accounting policies are the specific principles, bases, conventions, rules and practices applied
by an entity in preparing and presenting financial statements.
5- if the company change an accounting policy, it should not disclose the reasons and results of
this change
6- There is rent revenue $3000 related to year 2012 but discovered and collected at May 2013,
it's recorded as a revenue for the year 2013.
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