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I hope I will not disturb you Mike but I have the same issue with this query, I’m not sure if you receive it
I have the following questions regarding the Sundry mini exercises:
Question 2: Although I understand the booking (as the explanation is similar to the question 12), I’m not able to get why the price of the share is 20 c.
Question 9: Why in the answer there is not an entry related with Cost of goods sold and with inventory?
Thank you for the support!
Cheers!
Q2 – the price of the share is NOT 20 cents. That’s the earnings per share and that’s calculated by dividing earnings of $26,250 by the weighted average number of equity shares in issue through the year
Q9 – because the mistake was not in inventory – the mistake was because the goods had been invoiced so it was revenue and receivables that were wrongly stated
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