Financil free essay sample

Ann Polytechnic School of Business Accountancy April 2013 Semester Fundamentals of Financial Management Tutorial 3: Financial Accounting Fundamentals (Part II) for Week Beginning 6 May 2013. Read the Business Times article, â€Å"Beginner’s Guide to Equities†, dated on 25 April 2011 and answer the following questions: In event of liquidation, what right clearly distinguishes a shareholder from a creditor (who has lent money to the company)? Creditor is the priority of pay What privileges do preference shareholders enjoy that ordinary shareholders do not have? Privilege of preference shareholders : Fixed rates of dividends Priority of claim in liquidation Possibilty of redemtion of shares Priority of payment of dividends Which class of shareholders would expect to reap greater benefits from a highly profitable company? Why? 2. The following items are provided for RS Enterprise on 30 September 2011: Cash $7,635 Office Equipment $14,160 Other Receivables $1,680 Rent Expense $7,200 Retained Losses (1 October 2010) $27,000 Share Capital $30,630 Trade Payables $15,420 Trade Receivables $7,650 With reference to the Statement of Comprehensive Income prepared in Tutorial 2, complete the Statement of Financial Position for RS Enterprise. We will write a custom essay sample on Financil or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page $ Current Assets Cash 7635 Trade receivables 7650 Other receivables 1680 Sub-total 16965 Non-current Assets Fixed Assets Office equipment 14160 Total Assets 31125 Current Liabilities Trade payables 15420 Non-current Liabilities 0 Total Liabilities 15420 Equity Share capital 30630 Retained losses (-27,000 + 12,075) 14925 15075 Total Liabilities and Equity 31125 The following items are provided for EFS Limited on 31 December 2012: Accounts payable $3,500 Accounts receivable $3,400 Bank overdraft $2,000 Cash $15,100 Equipment $27,000 Furniture Fixtures $15,000 Retained earnings (1 Jan 2011) $11,430 Share capital $40,000 With reference to the Statement of Comprehensive Income prepared in Classwork 2, complete the Statement of Financial Position for EFS Limited $ $ Current Assets Cash 15100 Accounts receivable 3400 18500 Non-current Assets Fixed Assets Furniture and fixtures 15000 Equipment 27000 42000 Total Assets 60500 Current Liabilities Accounts payable 3500 Bank Overdraft 2000 5500 Non-current Liabilities 0 Total Liabilities 5500 Equity Share capital 40000 Retained Earnings (11,430 + 3,570 ) 15000 55000 Total Liabilities and Equity 60500