23.6
Stein Frydenberg runs a taxable business. In the end of March 20×2 he starts to end the financial statements/accounting for 20×1. The trial balance of the accounts receivable in the balance sheet the 31 December 20×1 is 250 000 NOK including 25% VAT. The account receivables are stated at the nominal value and has the following composition:
Poor Payer AS 62 500 NOK
Air Castle AS 93 750 NOK
Per Olsen (12 500) NOK
Other receivables/claims 106 250 NOK
Total = 250 000 NOK
Frydenberg has provided the following information on the individual posts:
Poor Payer AS has payment problems. Stein Frydenberg expects Poor Payer AS will only pay 50% of the outstanding claim. The rest of the claim is uncertain and must be set aside as an expected requirement/demand.
Air Castle AS is bankrupt, the claim must be considered a confirmed loss.
The account of Per Olsen has a credit balance. The amount on the account is incorrect and concerns a payment of a previously written off receivable.
By prior experienceses Stein Frydenberg reckon some expected losses on the other receivables. 8000 NOK will be allocated to cover the expected losses in these receivables. The amount is calculated exclusive of VAT cage.
Question:
Make an evaluation of the account receivables in the financial statements per 31 December 20×1. How will the account receivables be recorded in the balance sheet per 31 December 20×1?
26.2
A company has on the 1
st of jult 20×1 recorded two long term loans/mortgages in the local commercial bank. One of the loans is in Norwegian kroner (NOK) and the other in foreign currency (euro). The covenants of the loan in NOK are the following;
Loan disbursed 600 000 NOK
Term loan with a maturity 4 years
Subsequent rate 8%
With a term loan the annual payments are equal. The interests and installments on the loan in NOK are to be paid annually on the 30
th of June, the first time June 30th 20×2.
The loan in foreign currency (euro) is recorded on the 31
st of December 20×1 and was the amount of 10 000 euros. The loan is free of interest and installment and is to be fully paid with maturity on the 31
st of December 20×5. The exchange rate was the following;
31.12.20×1 1 euro = 10 NOK
31.12.20×2 1 euro = 8 NOK
31.12.20×3 1 euro = 9 NOK
31.12.20×4 1 euro = 11 NOK
31.12.20×5 1 euro = 10 NOK
Question:
How would you manage the loans in the financial statements? Show your presentation in the income statement and balance sheet for the years 20×1 20×5.
26.6
Age Paulsen is the owner of the enterprise Paulsen Finance Service. The preliminary trial balance per 31
st of December 20×1 is displays the following:
| Debit | Credit | |
| Car Shares (unlisted) Prepaid rent Bank Deposits Capital Account Paulsen Private account Paulsen Loans in the bank Accrued “holiday payment” Accrued unpaid interests Revenue Sales shares Salary “Holiday payment” Employer fee Rent Various expenses Interest income Interest expense |
250 000 40 000 7 000 289 000 91 000 200 000 21 600 28 425 136 000 149 975 22 000 |
165 000 300 000 21 600 11 000 710 900 23 600 2 900 |
| Total | 1 235 000 | 1 235 000 |
The accruals at the end of the period is not included in the preliminary balance. An analysis of the individual accounts show the following:
1. The car was bought for 300 000 NOK. The economic life was the acquisition estimated to 5 years, while the residual value at the end of life was estimated to 50 000 NOK. The car is written off by use of a linear balance method.
2. The rent is 11 000 NOK per month and must be paid one month in advance.
3. The company has during the year acquired 200 listed shares for a total of 40 000 NOK. Later, 120 of them sold for 23 600 NOK. The sale price is recognized fully. The share price is per 31
st of December 20×1 220 kroner per share. The shares shall be valued in accordance with market principles.
4. The bank deposit has, according to the statement from the bank at the 31
st of December 20×1 a trial balance of 290 000 NOK. The accrued interests for December 20×1 are not recognized.
5. Interest and installment on the loan in the bank are payable in arrears on the 30
th of June every year. The interest rate is currently 9% per year.
6. The employer fee and “holiday payment” for the 6
th forward are not recorded. Holiday payment is calculated at a rate of 12% and employer fee at a rate of 14.1%.
Question:
Finalize the statements/accounting per 31
st of December 20×1 using the information above. The finalization is conducted in a tabular layout with columns for preliminary trial balance per 31
st of December 20×1, closing entries, income statement for 20×1 and balance sheet per 31
st of December 20×1.
Attachments:
Accounting.docx