ABC Limited list of balances on December 31, 2019 $00 Sales 727,911 Cost of sales 394,481...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ABC Limited list of balances on December 31, 2019 $00 Sales 727,911 Cost of sales 394,481 Distribution costs 70,262 Administrative expenses 90,530 Other operating expenses 32,150 Other operating income 16,300 Finance costs paid 900 Corporation tax charge for (Note 4) 46,208 Deferred taxation (Note 3) 6,280 Corporation tax payable (taken to Statement of Financial 20,648 Position) Property, plant & equipment 153,300 Accumulated depreciation 61,300 Long-term receivables 3,650 Trade receivables 150,126 Allowance for bad debts 7,506 Other receivables and prepayments 5,513 Cash and bank deposits 66,722 Issued ordinary share capital 200,000 General reserve 2,000 Profit & Loss Account: January 1, 2019 151,419 Long term loan 6,000 Trade payables 98,880 Other payables and accruals 21,625 Ordinary dividends paid 30,000 Closing inventories 276,027 Additional information: 1. Current portion of long term receivable $1,000,000. 2. Current portion of long term loan S2,000,000. 3. Deferred taxation is to be reduced by $246,000. 4. Decrease corporation tax by $1,526,000. 5. Allowance for bad debts is 5% of trade debtors. 6. Interest rate of 15% per annum is charged on the long term loan. No interest was outstanding at the beginning or at the end of the financial year. 7. Issued share capital on January 1, 2019, and on December 31, 2019 is 100,000,000 ordinary shares 8. Authorized share capital : 500,000,000 ordinary shares 9. All finance costs were paid during the financial year. 10.The following relates to 2018: $000 Sales 950,450 Cost of sales 575,565 159,550 Profit before interest & taxation Taxation charge 35,600 11.Property, plant and equipment: Assets Cost Accumulated Charge for the (Jan 1, 2019) Depreciation (Jan 1, 2019) $00 year $000 $000 Land 8,920 Buildings Plant & machinery 41,000 2,970 1,025 32,200 12,880 6,440 Furniture, fixtures & 9,200 7,165 1,740 equipment Motor vehicles 60,000 17,480 12,000 During the year equipment acquired amounted to $2,480,000 and equipment costing $500,000 with accumulated depreciation of $400,000 was disposed of for $150,000. Required: a. Prepare the Statement of Comprehensive Income for the year ended December 31, 2019. b. Prepare the Statement of Changes in Equity for the year ended December 31, 2019. ABC Limited list of balances on December 31, 2019 $00 Sales 727,911 Cost of sales 394,481 Distribution costs 70,262 Administrative expenses 90,530 Other operating expenses 32,150 Other operating income 16,300 Finance costs paid 900 Corporation tax charge for (Note 4) 46,208 Deferred taxation (Note 3) 6,280 Corporation tax payable (taken to Statement of Financial 20,648 Position) Property, plant & equipment 153,300 Accumulated depreciation 61,300 Long-term receivables 3,650 Trade receivables 150,126 Allowance for bad debts 7,506 Other receivables and prepayments 5,513 Cash and bank deposits 66,722 Issued ordinary share capital 200,000 General reserve 2,000 Profit & Loss Account: January 1, 2019 151,419 Long term loan 6,000 Trade payables 98,880 Other payables and accruals 21,625 Ordinary dividends paid 30,000 Closing inventories 276,027 Additional information: 1. Current portion of long term receivable $1,000,000. 2. Current portion of long term loan S2,000,000. 3. Deferred taxation is to be reduced by $246,000. 4. Decrease corporation tax by $1,526,000. 5. Allowance for bad debts is 5% of trade debtors. 6. Interest rate of 15% per annum is charged on the long term loan. No interest was outstanding at the beginning or at the end of the financial year. 7. Issued share capital on January 1, 2019, and on December 31, 2019 is 100,000,000 ordinary shares 8. Authorized share capital : 500,000,000 ordinary shares 9. All finance costs were paid during the financial year. 10.The following relates to 2018: $000 Sales 950,450 Cost of sales 575,565 159,550 Profit before interest & taxation Taxation charge 35,600 11.Property, plant and equipment: Assets Cost Accumulated Charge for the (Jan 1, 2019) Depreciation (Jan 1, 2019) $00 year $000 $000 Land 8,920 Buildings Plant & machinery 41,000 2,970 1,025 32,200 12,880 6,440 Furniture, fixtures & 9,200 7,165 1,740 equipment Motor vehicles 60,000 17,480 12,000 During the year equipment acquired amounted to $2,480,000 and equipment costing $500,000 with accumulated depreciation of $400,000 was disposed of for $150,000. Required: a. Prepare the Statement of Comprehensive Income for the year ended December 31, 2019. b. Prepare the Statement of Changes in Equity for the year ended December 31, 2019.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The statement of financial position as at 31 December 20X2 of Zoom Products Ltd included: Trade receivables...............................85,360 The financial statements for the year ended 31...
-
The Accounts Receivable balance and Allowance for Bad Debts for Signature Lamp Company at December 31, 2017, was $10,800 and $2,000 (credit balance), respectively. During 2018, Signature Lamp Company...
-
Comparative data from the statement of financial position of Elke Ltd. are shown below. (a) Using horizontal analysis, calculate the percentage of the base-year amount, using 2013 as the base year....
-
A 300-cm-long piece of straight wire is aligned vertically along the z-axis. The wire carries a downward current of 6.00 A. There is a 2.00-T magnetic field in the negative x-direction surrounding...
-
How does the law protect members of society?
-
In relation to the issue of biodiversity, what types of disclosures are suggested by GRI 304?
-
Due to a nationwide recession, PC Worlds merchandise inventory is gathering dust. It is now December 31, 2010, and the \($162,000\) that PC World paid for its ending inventory is \($14,000\) higher...
-
Richard Ushers home was protected by a home owners policy issued by National American Insurance Company of California. The policy included personal liability insurance. A provision in the policy...
-
Year 0 1 2 3 4 5 6 Cash Flow -$9,000 $2,000 $3,600 $2,700 $2,100 $2,100 $1,600 A. Payback. The company requires all projects to payback within 3 years. Calculate the payback period. Should it be...
-
Hotel DelRay is located at the heart of the city of Brussels, in Belgium. Brussels is a major hub for international politics, a home for several international organizations and diplomats, and a...
-
Find the volume of the solid generated by revolving the region enclosed by curve xy = 6, the x-axis and lines x = 2 and x = 4. A. 2 B. 47 . D. 367
-
Lockheed is presented in this chapter mainly as an example of: (a) Failure to record asset impairments. (b) Overstatement of sales. (c) Understatement of reserve for bad debts. (d) Improper use of...
-
Investors should be wary of large ________________ - ________________ charges in the income statement around the acquisition period because these are often signals that the company could be creating...
-
As a result of acquiring MCI, WorldCom had two billing systems, so employees would switch existing customers to the other system and get ________________ commission for the new account.
-
Ebbers and Grubman had no knowledge of the technicalities of the Internet, the Internet traffic, or the workings of the telecom industry, which led them to overestimate the demand for the Internet...
-
With which of the following gatekeepers did WorldComs Bankruptcy Examiner find fault? (a) The board of directors. (b) The investment banking company. (c) Both (a) and (b). (d) None of the above.
-
"Critics are worried the moves could trigger a serious downturn", do you agree with this opinion? Review the Real GDP and employment rate data and apply the AD-AS model to justify your answer.
-
Which property determines whether a control is available to the user during run time? a. Available b. Enabled c. Unavailable d. Disabled
-
Ted was a wealthy, 20% stockholder of TDS Corporation. He was looking over the financial statements of the corporation and saw that TDS Corporation was in need of a large loan. Furthermore, he knew...
-
To help you understand the importance of cash flows in the operation of a small business. You just received your year-end financial statements from your CPA. Although receiving the year-end financial...
-
This problem continues the accounting process for Pure Water, Inc., from the continuing problem in Chapter 2. The trial balance for Pure Water, Inc., at June 30, 2012, should look like this: During...
-
_______________ is defined as the degree to which a set of inherent characteristics fulfill requirements. A. Fitness for use B. Conformance to requirements C. Metrics D. Quality
-
The ___________ must be the basis for a project cost estimate if you plan to create a cost baseline and use earned value management as part of monitoring and controlling costs. A. project schedule B....
-
Using a(n) _________ approach to developing cost estimates requires a good deal of expert judgment and is generally less costly than others are, but it can also be less accurate. A. bottom-up B....
Study smarter with the SolutionInn App