Cawood Ltd is a manufacturer and retailer of electronic equipment and owns a number of properties...
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Cawood Ltd is a manufacturer and retailer of electronic equipment and owns a number of properties from which it operates. Cawood Ltd is preparing its draft financial statements for the year ended 30 June 2012 and the following brought forward information has been collected in readiness for the preparation of information in relation to non -current assets As at 30 June 2011 Land Property Fixtures and fittings Intangible brand (2) Site preparation costs Construction costs General overheads Staff relocation costs Cost Professional fees Launch event £ 1,500,000 3,400,000 360,000 290,000 Accumulated depreciation 1 amortisation £ 1,360,000 126,000 101,500 (1) On 1 January 2011 Cawood Ltd acquired a piece of land (included above) on which it planned to build a new retail unit. Cawood Ltd built the new retail property during the year ended 30 June 2012 and opened it on 30 June 2012 having incurred the following costs during the year : £ 90,000 1,200,000 30,000 10,500 7,800 5,200 Depreciation 1 amortisation method 1,343,500 £ 4% pa straight line 20% pa straight line 10 year life On 1 July 2011 fixtures and fittings which had cost £32,000 on 1 July 2009 were sold for cash, generating a profit on disposal of £1,200. On 1 April 2012 Cawood Ltd acquired new fixtures and fittings for £78,000. (3) On 1 July 2011 Cawood Ltd carried out a review of its depreciation methods. As part of this review, it was decided that a 15% pa reducing balance policy for fixtures and fittings would now be more appropriate (4) During the current year Cawood Ltd incurred £96,000 of research and development costs on an electronic integrated kitchen appliance Costs were incurred evenly between 1 September 2011 and 29 February 2012 and on 31 October 2011 the new integrated appliance was judged to be economically viable. The appliance was launched on 1 April 2012 and has been selling well. Cawood Ltd expects to be able to sell it for four years. Requirements Prepare the following for Cawood Ltd for inclusion in its financial statements ended 30 June 2012 : (i) the non-current assets section of its statement of financial position; (ii) a summary of the amounts that should be recognised in its income the investing activities section of its statement of cash flows. for the year statement ; and Cawood Ltd is a manufacturer and retailer of electronic equipment and owns a number of properties from which it operates. Cawood Ltd is preparing its draft financial statements for the year ended 30 June 2012 and the following brought forward information has been collected in readiness for the preparation of information in relation to non -current assets As at 30 June 2011 Land Property Fixtures and fittings Intangible brand (2) Site preparation costs Construction costs General overheads Staff relocation costs Cost Professional fees Launch event £ 1,500,000 3,400,000 360,000 290,000 Accumulated depreciation 1 amortisation £ 1,360,000 126,000 101,500 (1) On 1 January 2011 Cawood Ltd acquired a piece of land (included above) on which it planned to build a new retail unit. Cawood Ltd built the new retail property during the year ended 30 June 2012 and opened it on 30 June 2012 having incurred the following costs during the year : £ 90,000 1,200,000 30,000 10,500 7,800 5,200 Depreciation 1 amortisation method 1,343,500 £ 4% pa straight line 20% pa straight line 10 year life On 1 July 2011 fixtures and fittings which had cost £32,000 on 1 July 2009 were sold for cash, generating a profit on disposal of £1,200. On 1 April 2012 Cawood Ltd acquired new fixtures and fittings for £78,000. (3) On 1 July 2011 Cawood Ltd carried out a review of its depreciation methods. As part of this review, it was decided that a 15% pa reducing balance policy for fixtures and fittings would now be more appropriate (4) During the current year Cawood Ltd incurred £96,000 of research and development costs on an electronic integrated kitchen appliance Costs were incurred evenly between 1 September 2011 and 29 February 2012 and on 31 October 2011 the new integrated appliance was judged to be economically viable. The appliance was launched on 1 April 2012 and has been selling well. Cawood Ltd expects to be able to sell it for four years. Requirements Prepare the following for Cawood Ltd for inclusion in its financial statements ended 30 June 2012 : (i) the non-current assets section of its statement of financial position; (ii) a summary of the amounts that should be recognised in its income the investing activities section of its statement of cash flows. for the year statement ; and
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Related Book For
Intermediate Accounting Volume 2
ISBN: 9781260881240
8th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
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