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Answer to Question 1: Balance Sheet Statement of an Organisation

   

Added on  2020-05-28

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Running head: CORPORATE ACCOUNTINGCorporate AccountingName of the Student:Name of the University:Author’s Note:Course ID:
Answer to Question 1: Balance Sheet Statement of an Organisation_1
1CORPORATE ACCOUNTINGTable of ContentsAnswer to Question 1:.....................................................................................................................2Answer to Question 2:.....................................................................................................................3Answer to Question 3:.....................................................................................................................3Answer to Question 4:.....................................................................................................................4Answer to Question 5:.....................................................................................................................5Answer to Question 6:.....................................................................................................................6Answer to Question 7:.....................................................................................................................6References:......................................................................................................................................8
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2CORPORATE ACCOUNTINGAnswer to Question 1:In the balance sheet statement of an organisation, three main items are present and one ofthem is equity. Elanor Retail Property Fund is not exempted from this item as well. Based on thebalance sheet statement of 2017 of the organisation, the major items include issued capital,treasury shares, reserves and retained earnings. Issued capital is taken into account as the equityof the business firms (Armstrong et al. 2015). Issued capital is computed by multiplying thenumber of outstanding shares with the par value of the shares. The annual report of theorganisation states that issued capital has increased from $42,280,000 in 2016 to $55,768,000 in2017 (Elanorinvestors.com 2018).The next equity item of Elanor Retail Property Fund is reserves. As commented byAtanasov and Black (2016), reserve is a portion of the equity of an organisation, which is takeninto account as the additional amount except for basic share capital. The latest annual report ofElanor depicts that its reserves have increased from $13,411,000 in 2016 to $13,487,000 in 2017(Elanorinvestors.com 2018).The next item in the equity section of the organisation includes retained earnings. Itdenotes the overall profit and losses of the organisation from the time of its formation decreasedby any dividend paid on the part of the shareholders (Graham et al. 2017). According to theannual report, it has been found that the organisation has not experienced any form of retainedearnings; instead, it has suffered from accumulated losses. The accumulated losses of theorganisation have increased from ($6,968,000) in 2016 to ($7,228,000) in 2017, which denotesthat it has more losses in contrast to profits.
Answer to Question 1: Balance Sheet Statement of an Organisation_3

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