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The accounting report numbers are for Hikma Pharmaceuticals PLC in Dubai at June

ID: 2395239 • Letter: T

Question

The accounting report numbers are for Hikma Pharmaceuticals PLC in Dubai at June 31, 2018 ?Notepayabl 1 Iv 4,580 45,700 19,100 Non-Current) 3,300 Salaries and wages ay able Salaries and wages expense Utilities expense Equipment Accounts payable 4 Cash 22,200 9,780 24,000 Accumulated depreciation- equip. 6,000 4,000 Accounts receivable Dividends Retained earnings (8/1/2016 30,000 4,100 Bervice revenue500 58,100 Depreciation expense Rent revenue Share capital-ordinary16,200 Required (a) Prepare an income statement and a retained earnings statement for the year. (3+3-6 marks) Prepare a classified statement of financial position at July 31, 2018. (6 marks) (b)

Explanation / Answer

Solution:

(a)Income Statement & Retained earnings statement

Hikma Pharmaceuticals PLC

Income Statement

For the year ending July 31, 2018

Particulars

Amount

Revenues:

Service revenue

58,100

Rent revenue

6,500

Total revenue

64,600

Expenses:

Salaries and wages expenses

45,700

Utilities expense

19,100

Depreciation expense

4,000

Total expenses

68,800

Net Loss (Total revenue - Total expenses)

(4,200)

Hikma Pharmaceuticals PLC

Statement of Retained Earnings

For the year ending July 31, 2018

Particulars

Amount

Retained earnings (Beginning-8/1/2016)

30,000

Less: Net Loss

(4,200)

Less: Dividends

(4,000)

Retained earnings (Ending)

21,800

(b)Statement of financial position

Hikma Pharmaceuticals PLC

BALANCE SHEET

As of July 31, 2018

ASSETS

AMOUNT

LIABILITIES & STOCKHOLDERS’ EQUITY

AMOUNT

Current Assets

Current liabilities

Cash

22,200

Salaries and wages payable

4,580

Accounts receivable

9,780

Accounts Payable

4,100

Total Current Assets

31,980

Total current liabilities

8,680

Long term liabilities

Notes payable (Non- current)

3,300

Total liabilities

11,980

Property, plant, and equipment

Stockholders’ equity

Equipment                    : 24,000

Share capital-ordinary

16,200

Less: Accumulated depreciation – equipment                    : 6000

18,000

Retained earnings

21,800

Total Stockholders’ equity

38,000

TOTAL ASSETS

49,980

TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY

49,980

Particulars

Amount

Revenues:

Service revenue

58,100

Rent revenue

6,500

Total revenue

64,600

Expenses:

Salaries and wages expenses

45,700

Utilities expense

19,100

Depreciation expense

4,000

Total expenses

68,800

Net Loss (Total revenue - Total expenses)

(4,200)

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