corporate and financial accounting

harvard referencing style no word limit its based on calculations keep it simple

Corporate and financial
accounting

Table of Contents
QUESTION 6...................................................................................................................................3
REFERENCES................................................................................................................................5

QUESTION 6
(a) Determining the cash paid for the salary
Computation of cash paid for salary
Opening balance 200
Add: Salary expense 400
Less: closing balance 360
Salary paid 240
Therefore, cash paid for salary is $240 (Huber, Law and Khallaf, 2017).
(b) Calculating the amount paid for purchasing the new plant, property and equipment
Calculation for cash paid to purchase new PPE
Particulars Amount in $
Opening balance 400
Add:Revaluation 240
Less: Closing balance -1200
Less: Depreciation -80
Less cash received on sale of asset -80
Cash paid for purchase of assets -720
The company has made the purchase of new property, pant and equipment which is equal
to $720.
(c) Computing the amount paid for the dividend by the company
Particulars Amount in $
Opening balance 2000
Add: profit 1800
Less: closing balance 2800
Dividend paid 1000

Moon Light Ltd has paid dividend to its shareholders amounted to $1000 (Christensen,
Cottrell and Budd, 2016).
(d) Determining the amount that has been collected from the customers
Account receivable account
Particulars Amount in $ Particulars Amount in $
Opening balance 3600 Discount allowed 400
Sales 16000 Bad debts (note 1) 240
Cash collected 15760
Closing balance 3200
19600 19600
Note 1
Account for Doubtful debts
Particulars Amount in $
Opening balance 360
Add: Doubtful debts expense
for the year 200
Less: closing balance 320
Bad debts 240
Therefore, the Moon Light Ltd has collected the total amount of $15760 from its account
receivables.

REFERENCES
Books and Journals
Huber, M., Law, D. and Khallaf, A., 2017. Active learning innovations in introductory financial
accounting. In Advances in Accounting Education: Teaching and Curriculum
Innovations. Emerald Publishing Limited.
Christensen, T. E., Cottrell, D. M. and Budd, C., 2016. Advanced financial accounting. NY
McGraw-Hill/ Irwin,.