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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