CBC is a government owned enterprise which is legislated to generate its own income which it uses to cover capital and recurrent expenditures. The legislations also give the government the powers to order CBC to transfer all or part of the income it generates to the consolidated fund as it deems fit. Outside of these powers, its government also provide CORIS RA with monthly subventions to cover its recurrent expenditures based on CORIS RA budgetary demands and the legal allocations by the government.
For the 2017 and 2018, CBC used the cash basis to prepare its financial statements, although some of the accounting transactions were recorded using the accrual basis. It should be noted that the government instructed all of its agencies to use an accrual basis that is guided and recommended by IPSASs.
You were asked by to government to assist CBC with its accounting processes, which involved the recording, generation and preparation of accounting transactions and final accounts as stipulated by the IPSASs.
Working with a team of qualified and experienced accountants, you were able to prepare the following accounting information of CBC for the year ending December 2020: Details Amount
Dividend Received 93,250
Loan payment 143,000
Amounts Recovered 194,000
Interest Expense 200,000
Court Administration Fees 240,000
Cost of Training 275,000
Bar License 300,400
Store Rent 300,750
Fines and Penalties 330,000
General Cleaning 350,000
Sanitation 370,000
Accumulated Fund (1/1/2020) 370,600
Basic Taxes and Rates 370,900
Allowances 390,470
Equity Investment Acquired 420,000
Royalties 430,000
Accountancy and Consultancies cost 470,000
Work-In-Progress 490,000
Herbalist License 530,370
Posts not on Establishment 580,000
Other Expenditure 600,000
Stool Land Revenue 600,000
Transport and Travelling cost 620,000
Utilities 630,000
Hostel License 630,920
Advances to Staff 660,000
Local Park Fees 720,400
Inventory and Consumables 800,000
Special Services 820,000
Property Rate 820,900
Social Benefit 840,300
Market Tolls 870,000
Consumption of Fixed Assets 960,000
Infrastructure, Plant and Equipment 980,000
Permit Fees 990,000
Proceeds from Sale of Equity 990,320
Established Posts 1,140,700
Development Bonds Issued 1,300,000
Business Income 2,300,600
Loans Received 2,330,000
Local Fund 2,930,000
Rent from Land and Building 6,120,800
Central Government Salaries 12,000,000
Cash and Cash Equivalent @ (1/1/2020) 12,300,240
Parish Development Facility 15,000,600
NOTES
1. You are to ensure that CBC adopts and maintain the accrual accounting basis when preparing its financial statements
2. As of December 31, 2020, the Established Post had outstanding salaries of $180,000,000.00
3. Closing Inventory and Consumables as at December 31, 2020 stood at $170,000,000.00
Prepare
A. Prepare CORIS RA Statement of Cash Flow for the year ended December 31, 2020