Financial Accounting Assignment Solution: Analysis of Transactions

This document presents a comprehensive solution to a financial accounting assignment, focusing on the analysis of various financial transactions. The solution includes detailed calculations for the cash paid for salary, the purchase of new plant, property, and equipment, and the dividend paid by the company. It also provides an analysis of accounts receivable, including the calculation of cash collected from customers and an account for doubtful debts. The assignment utilizes financial accounting principles to determine the financial impact of various transactions. The solution is supported by references to academic sources, enhancing the credibility and depth of the analysis. This solution is valuable for students seeking to understand and apply financial accounting concepts to real-world scenarios.

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,.