The draft statement of profit or loss for Harris Ltd for the 9 months ending 30...

  

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The draft statement of profit or loss for Harris Ltd for the 9 months ending 30 September 2022 is given below: Sales Cost of sales Gross profit Administration salaries Insurance Rent Advertising Motor vehicle costs Depreciation motor vehicles (20% of $30000 x 9/12) Other expenses Total expenses Profit for year Assets Plant and Machinery at Carrying Amount Motor Vehicles at Carrying amount (bought on 1 January 2022 at a cost of $30000) Inventory Raw materials Inventory Finished Goods Trade Receivables Cash at bank Total assets The company's statement of financial position as at 30 September 2022 includes the following items: 1 $ 80,000 25500 25,000 100,000 5,000 30,000 40,000 15,000 4,500 15,000 100,000 500,000 19,500 750,000 $ 1,200,000 800,000 400,000 Equity and Liabilities Ordinary share capital Retained profits 209,500 190,500 Long term loan (raised on 1 Jan 2022) Trade creditors Total equity and Liabilities 200,000 190,000 100,000 260,000 750,000 a) b) c) During the 3 months to 31 December 2022, the following company transactions took place: Cheques aggregating $200,000 were received from Trade Receivables. Raw materials of $40,000 were purchased on credit. d) 1. 2. 3. 4. 5. 6. Required: 7. 8. 9. 10. 11. + interest) The Loan will be repaid in 3 equal annual instalments (principal payable on 31 December. The interest rate is 10% per annum. And the annual instalment of $40,211 was duly paid on 31 December 2022. Rental expenses of $16,000 was paid. A new motor vehicle costing $20,000 was purchased on credit on 1 October 2022. Raw materials of $42,000 were converted into finished goods, incurring $13,500 in direct labour costs and $5,000 of plant and machinery depreciation. Finished goods costing $60,000 were sold for $100,000 on credit. Finished goods costing $45000, were sold for $90,000 in cash. Administration salaries of $36,000 for the 3 months ending 31 December 2022 were paid in cash. Payments of $150,000 were made to trade creditors. Depreciation on motor vehicles for the 3 month period is to be computed. Motor vehicles are depreciated on a straight-line basis at 20% per annum on cost. Prepare the accounting equation as at 31 December 2022. Demonstrate that the equal annual instalment on the loan amounts to $40,211. Prepare the statement of profit or loss for the year ended 31 December 2022. Prepare the statement of financial position as at 31 December 2022. [11 marks] Page 2 of 10 [2 marks] [6 marks] [6 marks] Qu The draft statement of profit or loss for Harris Ltd for the 9 months ending 30 September 2022 is given below: Sales Cost of sales Gross profit Administration salaries Insurance Rent Advertising Motor vehicle costs Depreciation motor vehicles (20% of $30000 x 9/12) Other expenses Total expenses Profit for year Assets Plant and Machinery at Carrying Amount Motor Vehicles at Carrying amount (bought on 1 January 2022 at a cost of $30000) Inventory Raw materials Inventory Finished Goods Trade Receivables Cash at bank Total assets The company's statement of financial position as at 30 September 2022 includes the following items: 1 $ 80,000 25500 25,000 100,000 5,000 30,000 40,000 15,000 4,500 15,000 100,000 500,000 19,500 750,000 $ 1,200,000 800,000 400,000 Equity and Liabilities Ordinary share capital Retained profits 209,500 190,500 Long term loan (raised on 1 Jan 2022) Trade creditors Total equity and Liabilities 200,000 190,000 100,000 260,000 750,000 a) b) c) During the 3 months to 31 December 2022, the following company transactions took place: Cheques aggregating $200,000 were received from Trade Receivables. Raw materials of $40,000 were purchased on credit. d) 1. 2. 3. 4. 5. 6. Required: 7. 8. 9. 10. 11. + interest) The Loan will be repaid in 3 equal annual instalments (principal payable on 31 December. The interest rate is 10% per annum. And the annual instalment of $40,211 was duly paid on 31 December 2022. Rental expenses of $16,000 was paid. A new motor vehicle costing $20,000 was purchased on credit on 1 October 2022. Raw materials of $42,000 were converted into finished goods, incurring $13,500 in direct labour costs and $5,000 of plant and machinery depreciation. Finished goods costing $60,000 were sold for $100,000 on credit. Finished goods costing $45000, were sold for $90,000 in cash. Administration salaries of $36,000 for the 3 months ending 31 December 2022 were paid in cash. Payments of $150,000 were made to trade creditors. Depreciation on motor vehicles for the 3 month period is to be computed. Motor vehicles are depreciated on a straight-line basis at 20% per annum on cost. Prepare the accounting equation as at 31 December 2022. Demonstrate that the equal annual instalment on the loan amounts to $40,211. Prepare the statement of profit or loss for the year ended 31 December 2022. Prepare the statement of financial position as at 31 December 2022. [11 marks] Page 2 of 10 [2 marks] [6 marks] [6 marks] Qu

Answer rating: 100% (QA)

a Accounting Equation as at 31 December 2022 The accounting equation is Assets Equity Liabilities Assets Plant and Machinery at Carrying Amount 80000 Motor Vehicles at Carrying Amount 25500 Inventory ... View the full answer