answersfinalexamFAfeb2013
UNIVERSITY OF GRONINGEN
Faculty of Economics and Business
Department of Accounting
ANSWERS
FINAL EXAM FINANCIAL ACCOUNTING
FOR IB / E&BE
Semester 1.2 2012/2013
Friday February 1, 2013
Time: 14:00 to 16:30
Location: Exam Hall
Exercise 1 (30)
The financial year of trading Company Iceage ltd starts on January 1 and ends on December 31.
Iceage ltd presents the balance sheet (in euro's) on January 1, 2012 as follows.
Balance sheet on January 1, 2012
Building
400,000
Long term debt
240,000
Trucks
262,500
Accounts payable trade
66,000
Trade inventory
209,000
Salaries payable
12,500
Accounts receivable trade
120,000
Interest payable
14,400
Cash
8,500
Common stock
350,000
Additional paid in capital
70,000
Retained earnings
254,600
Treasury stock
-7,500
1,000,000
1,000,000
In the footnotes, the following information is disclosed with respect to the year 2012.
April 1, 2012 the company purchased a new truck for a price of € 100,000. The company paid € 60,000 in cash and the remaining € 40,000 by issuing 250 common shares with a par value of € 100 each.
The interest on the Long term debt is 8% per year. The interest will be paid, in arrear, on
April 1. The debt will be repaid in 6 years from now in equal amounts each year, also on April 1.
The treasury stock on the beginning balance sheet is related to a repurchase of 80 own shares for 7,500 in 2011. These 80 shares were re-issued to the market on Sept 1, 2012.
A dividend of € 20 per share was declared and paid on July 1, 2012.
The cost of the goods sold is 374,000.
All purchase and sales transactions are on credit
The accounts receivable trade have a net value of
120.000
This value is composed of a gross value of
140.000
and an allowance for uncollectible accounts
20.000
A few clients have gone bankrupt in the accounting year 2012. The face value of
Faculty of Economics and Business
Department of Accounting
ANSWERS
FINAL EXAM FINANCIAL ACCOUNTING
FOR IB / E&BE
Semester 1.2 2012/2013
Friday February 1, 2013
Time: 14:00 to 16:30
Location: Exam Hall
Exercise 1 (30)
The financial year of trading Company Iceage ltd starts on January 1 and ends on December 31.
Iceage ltd presents the balance sheet (in euro's) on January 1, 2012 as follows.
Balance sheet on January 1, 2012
Building
400,000
Long term debt
240,000
Trucks
262,500
Accounts payable trade
66,000
Trade inventory
209,000
Salaries payable
12,500
Accounts receivable trade
120,000
Interest payable
14,400
Cash
8,500
Common stock
350,000
Additional paid in capital
70,000
Retained earnings
254,600
Treasury stock
-7,500
1,000,000
1,000,000
In the footnotes, the following information is disclosed with respect to the year 2012.
April 1, 2012 the company purchased a new truck for a price of € 100,000. The company paid € 60,000 in cash and the remaining € 40,000 by issuing 250 common shares with a par value of € 100 each.
The interest on the Long term debt is 8% per year. The interest will be paid, in arrear, on
April 1. The debt will be repaid in 6 years from now in equal amounts each year, also on April 1.
The treasury stock on the beginning balance sheet is related to a repurchase of 80 own shares for 7,500 in 2011. These 80 shares were re-issued to the market on Sept 1, 2012.
A dividend of € 20 per share was declared and paid on July 1, 2012.
The cost of the goods sold is 374,000.
All purchase and sales transactions are on credit
The accounts receivable trade have a net value of
120.000
This value is composed of a gross value of
140.000
and an allowance for uncollectible accounts
20.000
A few clients have gone bankrupt in the accounting year 2012. The face value of