Reference no: EM132989312

Question - The following information relates to Sonata Ltd.

(a) At the beginning of the accounting period the company has a salary payable liability of $300 and at the reporting date a salary payable of $400. During the year the salary expense shown in the income statement was $700.

(b) At the beginning of the accounting period the company has property plant and equipment (PPE) with a carrying amount of $300. At the end of the accounting period, the carrying amount of the PPE is $1,000. During the year depreciation charged was $90, a PPE with a carrying amount of $70 was sold for $50.

(c) At the beginning of the accounting period the company has retained earnings of $1000 and at the end of the accounting period the balance of the retained earnings is $1500. The reported profit for the year was $3800.

(d) Sonata Ltd also provides you with the following information on its sale and collection of accounts receivable:

Sales for the year $20,000

Discounts provided to customers for early payment $500

Doubtful debts expense for the year $200

Opening balance of accounts receivable $4,000

Closing balance of accounts receivable $3,500

Opening balance of the allowance for doubtful debts $400

Closing balance of the allowance for doubtful debts $320

Required -

(a) Calculate the cash paid for salary.

(b) Calculate the cash paid to buy new PPE.

(c) Calculate the dividend paid.

(d) Calculate cash collected from customer.