b) Harris plcs income statement for the month ending 31 January 20X2. Harris plc had the following

•  

b) Harris plc’s income statement for the month ending 31 January 20X2.
 

Transcribed Image Text:

Harris plc had the following balance sheet at 31 December 20X1: Amounts in £ Cash 50,000 12,000 23,000 85,000 80,000 165,000 Trade receivables Inventories Total current assets Property, plant and equipment Total assets Trade payables 7,000 7,000 1,000 157,000 Total current liabilities Share capital Retained earnings Total liabilities and shareholders' equity 165,000 The following events occurred during the month of January 20X2: 1. Harris plc sold £10,000 of its inventory for a price of £16,000. The related cash payment is expected to be received in March 20X2; 2. Harris plc paid its suppliers £3,000 in cash, for inventory purchases made during the year 20X1; 3. Harris plc's accountants recorded depreciation of £5,000 related to ABC plc's Property, plant & equipment; 4. Harris plc paid a £15,000 cash dividend to its shareholders; 5. Harris plc paid £10,000 in cash to repurchase some of its own ordinary shares, which were not cancelled. Required: Showing all your calculation workings, prepare: Harris plc had the following balance sheet at 31 December 20X1: Amounts in £ Cash 50,000 12,000 23,000 85,000 80,000 165,000 Trade receivables Inventories Total current assets Property, plant and equipment Total assets Trade payables 7,000 7,000 1,000 157,000 Total current liabilities Share capital Retained earnings Total liabilities and shareholders' equity 165,000 The following events occurred during the month of January 20X2: 1. Harris plc sold £10,000 of its inventory for a price of £16,000. The related cash payment is expected to be received in March 20X2; 2. Harris plc paid its suppliers £3,000 in cash, for inventory purchases made during the year 20X1; 3. Harris plc's accountants recorded depreciation of £5,000 related to ABC plc's Property, plant & equipment; 4. Harris plc paid a £15,000 cash dividend to its shareholders; 5. Harris plc paid £10,000 in cash to repurchase some of its own ordinary shares, which were not cancelled. Required: Showing all your calculation workings, prepare:

Answer rating: 100% (QA)

Harris plcs Income statement for the month ending ... View the full answer