Explain the role of the International Accounting Standards Board (IASB) in relation to International Financial Reporting Standards (IFRS).
IASB publishes the IFRS.
International Financial Reporting Standards (IFRS) are the set of accountinmgstatndards that are followed by more than 116 countries.
International Accounting Standards Board (IASB) is a private organization which is responsible for approiving the IFRS.
Polk Street Homes had the following cash transactions for the month ended July 31, 2018.
Collections from customers $ 25,000
Issued common stock 13,000
Purchase of equipment 25,000
Payment of cash dividends 4,000
Cash balance, July 1, 2018 14,000
Cash balance, July 31, 2018 19,000
Prepare the statement of cash flows for Polk Street Homes for the month ended
July 31, 2018.
Wizco Advertising’s balance sheet data at May 31, 2018, and June 30, 2018, follow:
May 31, 2018 June 30, 2018
Total Assets $ 122,000 $ 287,000
Total Liabilities 66,000 144,000
For each of the following situations that occurred in June, 2018 with regard to
common stock and dividends of a corporation, compute the amount of net income or
net loss during June 2018.
a. The company issued $10,000 of common stock and paid no dividends.
b. The company issued no common stock. It paid cash dividends of $3,000.
c. The company issued $12,500 of common stock and paid cash dividends of
Let’s examine a case using Greg’s Tunes and Sal’s Silly Songs. It is now the end of the first year of operations, and the stockholders want to know how well each business came out at the end of the year. Neither business kept complete accounting records, and no dividends were paid. The businesses throw together the data shown on the next page at year-end: $ 23,000 8,000 35,000 22,000 $ 10,000 6,000 44,000 9,000 Total Assets Common Stock Total Revenues Total Expenses Greg’s Tunes: Sal’s Silly Songs: Total Liabilities Common Stock Total Expenses Net Income To gain information for evaluating the businesses, the stockholders ask you several questions. For each answer, you must show your work to convince the stockholders that you know what you are talking about.
Requirements 2. Which business owes more to creditors?
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