Question 1.
The following questions are required to be answered relate to the course text
Questions
a) Statement of Cash flows direct method Chapter 18 ;
Required
i. Prepare a cash flow statement using the direct method for operating cash flows
ii. Prepare a reconciliation of the [profit and cash provided by the operations
b) Bank reconciliation
Note: Cheque no 216 was also incorrectly posted to the general ledger.
Required prepare a bank reconciliation for the Month ended the 31 March
c) Accounting for Shares
Demons Ltd issued a prospectus for the issue of 100,000 $5.00 shares on 1 January2012.The prospectus required payment of $3.00 per share on application and $2.00 to be paid when called.
The company received applications for 120,000 shares by the closing date of 28February 2012.100,000 shares were issued on 1 March 2012 with excess application money being refunded.
On 30 April 2012 the company called the balance of $2.00 on the shares. All call money was received by 15 May 2012.On 30 June 2012 Demons Ltd declared and paid a dividend of 5 cents per share.
Required:
Prepare the journal entries for the year ended 30 June 2012 to account for the above transactions.