Acc04

Posted on February 20, 2017

Accounting Help 04

Income Statement and Balance Sheet
 
Forecast an income statement and balance sheet for Nigerian Breweries (NB) for 2016. For this part, refer to the attached summary financial statements and the following assumptions. Please provide journal entries in the space provided below. Don’t worry if accounts temporarily have negative balances (transactions are not sequential; they are aggregations over the period). The parts can be worked in the order they appear (i.e., you don’t need information from later parts to solve earlier parts).
 
1. Sales in 2016 will total ₦300.0. At the end of 2016, Nigerian Breweries will be owed ₦20.0 by customers.
 
2. When NB sells product in containers (kegs or other large containers), they sometimes require that the customer make a deposit for the return of the containers (i.e., NB retains title to the container and the deposit is returned in cash to the customer when the container is returned). During 2016, NB will collect cash of ₦50.0 for container deposits from customers. At the end of 2016, ₦13.0 of container deposits will remain outstanding (i.e., for containers that have not yet been returned).
 

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
 
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
 
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
 
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
 
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
 
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.
 

Features

Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.

 

Relevancy
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.

 

Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.

 

 

100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services


 
3. NB sometimes prepays farmers for barley and hops (grains) to be provided in subsequent years’ harvests. Prepayments are sometimes for two seasons, but never for more than two. Prepayments always pay out as expected (i.e., grain associated with a 2015 prepayment for the 2017 season will be received in 2017). Note that this implies that you need to think about how deposits move between the noncurrent and current Prepayment accounts
 
During 2016, NB will sign contracts and prepay ₦4.0 for grains to be provided in 2017 and ₦2.0 for grains to be provide in 2018. In addition, NB will sign contracts for ₦3.5 for grain to be delivered in 2019, payment for which will be made in 2018.
 
During 2016, NB will purchase ₦150.0 of grains from brewers of which ₦3.3 was prepaid and the remainder is on trade payable. The ending balance in the Trade Payable account will be ₦83.0. Note that all costs incurred to produce the beer (including the cost of grains) should be booked to Inventories.
 
4. During 2016, NB will pay employees who are directly involved in brewing the beer ₦10.0 as well as paying ₦5.0 for other ingredients that go into the beer. In addition, NB will pay ₦52.6 to employees and for other costs involved in marketing and administration
 
5. The ending balance in inventory will total ₦32.0.
 
6. NB will purchase ₦50.0 of Property, Plant and Equipment (PP&E) during 2016, all for cash. They will sell PP&E during 2016 which originally cost them ₦9.0 and is two-thirds of the way through its useful life, and will record a gain on sale of ₦0.5. In addition, they will record depreciation during 2016 based on a total of ₦390.0 of PP&E (gross) with an average useful life of 12 years and no salvage value. (NB uses a Property and Equipment net t-account. Instead of having an accumulated depreciation account, the company books any debits or credits they would have made to accumulated depreciation directly to the Property and Equipment account.)
 
7. For simplicity, assume there will be no interest income or interest expense in 2016 (just to keep the problem manageable). The 2016 income tax rate will be 30% (tax rates vary slightly across years). Taxes Payable for each year’s earnings are always paid in February of the following year.

Product Code :Acc04

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)
  
You can also email us at assignmentconsultancy.help@gmail.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.

Summary
User Rating
5 based on 1 votes
URL