2. The following balances were obtained from the books of The Living Gungo as at December...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2. The following balances were obtained from the books of The Living Gungo as at December 31, 2012: Capital Drawings Factory machinery Equipment Provision for dep'n-Factory machinery Provision for dep'n-Equipment Purchases of raw material Sales Returns inwards Returns outwards on raw materials Debtors Creditors Factory wages Factory general expenses Direct wages Rent & rates Insurance Selling & distribution Bank overdraft Stock at Jan 1: expenses 1,400 12,000 3,000 18,740 250 1,980 3,520 1,080 1,000 1,410 600 2,000 20,000 2,000 400 34,170 140 4,020 2,700 Stock at Jan 1: Raw material Finished goods WIP Office salaries Notes: 3,350 4,430 1,320 1,350 63,430 63,430 1. Closing stock: raw material - 4,900; finished goods - 3,404; work in progress - 1,210 2. Rent & rates owing by 90, insurance prepaid by 100, selling and distribution expense owing by 400 3. Provide for depreciation on machinery 10% reducing balance; equipment 10% straight line. Equipment is used equally in the factory and the office 4. Apportion insurance equally, while rent and rates are to be apportioned 2/3 to the factory 5. Goods produced were transferred at a mark up of 15% Required: Prepare the manufacturing account and statement of profit or loss for the year, as well as the statement of financial position as at that date. 2. The following balances were obtained from the books of The Living Gungo as at December 31, 2012: Capital Drawings Factory machinery Equipment Provision for dep'n-Factory machinery Provision for dep'n-Equipment Purchases of raw material Sales Returns inwards Returns outwards on raw materials Debtors Creditors Factory wages Factory general expenses Direct wages Rent & rates Insurance Selling & distribution Bank overdraft Stock at Jan 1: expenses 1,400 12,000 3,000 18,740 250 1,980 3,520 1,080 1,000 1,410 600 2,000 20,000 2,000 400 34,170 140 4,020 2,700 Stock at Jan 1: Raw material Finished goods WIP Office salaries Notes: 3,350 4,430 1,320 1,350 63,430 63,430 1. Closing stock: raw material - 4,900; finished goods - 3,404; work in progress - 1,210 2. Rent & rates owing by 90, insurance prepaid by 100, selling and distribution expense owing by 400 3. Provide for depreciation on machinery 10% reducing balance; equipment 10% straight line. Equipment is used equally in the factory and the office 4. Apportion insurance equally, while rent and rates are to be apportioned 2/3 to the factory 5. Goods produced were transferred at a mark up of 15% Required: Prepare the manufacturing account and statement of profit or loss for the year, as well as the statement of financial position as at that date.
Expert Answer:
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
Posted Date:
Students also viewed these accounting questions
-
The following balances were obtained from the books of Hakuna Matata ple as at August 31, 2014: 350,000 Premises 10% Mortgage Retained earnings Goodwill 200,000 62,500 200,000 372,160 Debtors...
-
The following balances were taken from Hashtag Traders, a general dealer in Rustenburg, on 31 May 2020, the end of the accounting period. R R Capital 2 000 000 Drawings Land and buildings at cost 45...
-
Management of Blossom, Inc., an electronic games manufacturer, is planning to purchase flash memory from one of two sources. Kyoto, Inc., quotes a price of 7,200 per gigabyte. The current exchange...
-
int Temp [10] = { 22, 30, 40,28,20,60}; For the above code, answer the following questions i) Find the size of Temp array. ii) How many memory locations are present in Temp array ? iii) Find the...
-
Why are natural resources called wasting assets?
-
Suppose that, in the previous problem, Childs is considering two mutually exclusive investments. Project A has an NPV of $135, and Project B has an NPV of $215. As a result of taking Project A, the...
-
What is a nation-state, and how is it an imagined community?
-
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2017. In the process of setting up the business, Karane has acquired various types of assets. Below...
-
Given the funktion f: IR \{-3} IR with f(x) = a) Show by using polynomial division that, 2x+7 x+3 f(x)=2+ 1 for all x R\{-3} +3 hold and sketch the graph of the function f by developing the graph of...
-
Of all the price analysis methodologies that exist, which are the foundational methods. Longing & Shorting. Trading & Investing. Volume & sentiment. On-chain & Macroeconomic. Mean reversion &...
-
How much can Brandon claim for his meals while he is away? What is the Amount claimed for BREAKFAST with full workings? What is the Amount claimed for LUNCH with full workings? Brandon is a long...
-
Calculate the average force air discharge from a compressor to compress a tank of 1000 L 1 kg/cm2 to 5 kg/cm2 at 30C 2 h.
-
A monoacidic sugar extracted from water into hexanol has partition coefficients of 4.5 and 2.0 at \(\mathrm{pH} 4.0\) and 5.5, respectively, both at the same temperature. Estimate the value of...
-
Plot the specified output by using the RK4 method. \(3 \ddot{x}+\dot{x}+x^{3}=\frac{4}{3}, x(0)=\frac{1}{3}, \dot{x}(0)=0,0 \leq t \leq 20\), output: \(\dot{x}\)
-
Graph the first-degree inequalities in two unknowns in Problems 13-48. \(2 x-3 y+4 \leq 1\)
-
The following output (from \(\mathrm{R}\) ) presents the results of a hypothesis test for a population mean \(\mu\). a. Is this a one-tailed or a two-tailed test? b. What is the null hypothesis? c....
-
Project A requires a $355,000 initial investment for new machinery with a five-year life and a salvage value of $41,500. Project A is expected to yield annual income of $21,400 per year and net cash...
-
Suppose you need to answer any four of seven essay questions on a history test and you can answer them in any order. a. How many different question combinations are possible? b. What is the...
-
On January 1, 2006, Mr. Bucks settled a trust for his daughter Jane, who became age 17 in 2006. The trust was documented by a written agreement. There are three trustees, Mr. Bucks, Mrs. Bucks and a...
-
John Ingles has provided you with the following information related to his various investment holdings as of December 31, 2012. Interest earned on joint bank account with his spouse (spouse...
-
Jean-Luc, the taxpayer in this case, was experienced in retail real estate, having originally been employed by a fast-food chain of restaurants. His duties were to locate, acquire and open...
-
For methanol synthesis reaction \[ \mathrm{CO}(\mathrm{g})+2 \mathrm{H}_{2}(\mathrm{~g}) ightleftharpoons \mathrm{CH}_{3} \mathrm{OH}(\mathrm{g}) \] Using a feed mixture of carbon monoxide and...
-
The L2 steel blade of the band saw wraps around the pulley having a radius of \(12 \mathrm{in}\). Determine the maximum normal stress in the blade. The blade has a width of 0.75 in. and a thickness...
-
An L2 steel strap having a thickness of 0.125 in. and a width of \(2 \mathrm{in}\). is bent into a circular arc of radius \(600 \mathrm{in}\). Determine the maximum bending stress in the strap.
Study smarter with the SolutionInn App