Mitchell plc is a manufacturing company. The following balances have been extracted from its books and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Mitchell plc is a manufacturing company. The following balances have been extracted from its books and records as at 30 June 2020: Share capital Share premium Retained earnings Delivery vans at cost Delivery vans accumulated depreciation Property at cost Property accumulated depreciation Purchases Administration expenses Factory wages Warehouse wages Office wages Bad debts written off Sales Inventory at 1 July 2019 Cash at bank Trade receivables Provision for doubtful debts at 1 July 2019 Trade payables 10% debentures Debenture interest paid Dividend plaid 3 61,875 372,360 536,010 118,878 83,007 60,970 27,820 1,792 61,776 69,417 76,437 5,625 1,600 1,477,567 £ 225,000 22,500 66,301 21,465 33,750 956,776 3,375 45,900 112,500 1,477,567 I The following information has not yet been taken account of: a) The company has the following depreciation policy: Property Delivery vans 10% straight line 20% reducing balance Depreciation on the property should be allocated as follows: Cost of sales Administration Depreciation on delivery vans Distribution cost 50% 50% 100% You should round numbers to the nearest pound. b) The doubtful debt provision is required to be 10% of the trade receivables. c) The closing inventory is determined to be £380,000. d) Distribution costs include £7,500 a prepayment and a total of £3,300 accrued expenses. e) Accrued administration expenses total £4,520. f) Corporation tax for the year is estimated to be £39,700. Required: a) Prepare a statement of profit or loss for Mitchell ple for the year ended 30 June 2020. b) Prepare a statement of financial position for Mitchell ple as at 30 June 2020. Mitchell plc is a manufacturing company. The following balances have been extracted from its books and records as at 30 June 2020: Share capital Share premium Retained earnings Delivery vans at cost Delivery vans accumulated depreciation Property at cost Property accumulated depreciation Purchases Administration expenses Factory wages Warehouse wages Office wages Bad debts written off Sales Inventory at 1 July 2019 Cash at bank Trade receivables Provision for doubtful debts at 1 July 2019 Trade payables 10% debentures Debenture interest paid Dividend plaid 3 61,875 372,360 536,010 118,878 83,007 60,970 27,820 1,792 61,776 69,417 76,437 5,625 1,600 1,477,567 £ 225,000 22,500 66,301 21,465 33,750 956,776 3,375 45,900 112,500 1,477,567 I The following information has not yet been taken account of: a) The company has the following depreciation policy: Property Delivery vans 10% straight line 20% reducing balance Depreciation on the property should be allocated as follows: Cost of sales Administration Depreciation on delivery vans Distribution cost 50% 50% 100% You should round numbers to the nearest pound. b) The doubtful debt provision is required to be 10% of the trade receivables. c) The closing inventory is determined to be £380,000. d) Distribution costs include £7,500 a prepayment and a total of £3,300 accrued expenses. e) Accrued administration expenses total £4,520. f) Corporation tax for the year is estimated to be £39,700. Required: a) Prepare a statement of profit or loss for Mitchell ple for the year ended 30 June 2020. b) Prepare a statement of financial position for Mitchell ple as at 30 June 2020.
Expert Answer:
Answer rating: 100% (QA)
A Statement of Profit or Loss for Mitchell plc for the Year Ended 30 June 2020 Revenue Sales 956776 ... View the full answer
Related Book For
Accounting For Non Accounting Students
ISBN: 9781292286938
10th Edition
Authors: John Dyson, Ellie Franklin
Posted Date:
Students also viewed these accounting questions
-
The following items have been extracted from the accounts: Required: (a) Prepare a Value Added Statement showing % for each year and % change (b) Draft a note for inclusion in the Annual Report...
-
The following data have been extracted from the financial statements of Prentiss, Inc., a calendar-year merchandising corporation: Total sales for 2015 were $1,200,000 and for 2014 were $1,100,000....
-
The following balances have been extracted from the books of account of Owen Ltd at 31 March 2015. Additional information (figures in $000): The directors propose to transfer $2000 to a general...
-
Litchfield Industries gathered the following information for the month ended June 31: The static budget volume is 5000 units: Overhead flexible budget: Number of units 8,000 9,000 10,000 Standard...
-
1. What environmental factors could Bill Strickland have changed in his life? 2. What moral authority does Bill Strickland speak from to struggling college students? 3. What impact did Stricklands...
-
The following mechanism has been proposed for the gas-phase reaction of chloroform (CHCl3) and chlorine: Step 1: Step 2: Step 3: (a) What is the overall reaction? (b) What are the intermediates in...
-
You have the following data for a city in the southwest. Calculate the quick ratio. Is this ratio favorable or unfavorable? Current Liabilities. \(\$ 28\) million Cash \(\$ 27\) million Investments...
-
Marina Company has a maximum capacity of 200,000 units per year. Variable manufacturing costs are $12 per unit. Fixed overhead is $600,000 per year. Variable selling and administrative costs are $5...
-
I want accurate answer with proper explanation please I'll upvote . Valley Stores, a US. department store chain, annually negotiates a contract with Alpine Watch Company, located in Switzerland, to...
-
Consider the idealized, symmetric two-cell wing box shown in the figure below. The area enclosed by the semi-elliptical web 45 is 51,500 mm. The shear modulus of the material is G = 27 GPa....
-
solve this problem of a Brayton cycle in a gas turbine power plant. Properties of air should be for when it is at 300K; cv=0.718, cp=1.005, k=1.4 This modified brayton cycle consists of; (1) ?>...
-
How can data analysis and insights be used to inform business writing decisions? Provide examples of how businesses can leverage data to create more compelling and targeted communications.
-
Analyze the demand for united airlines ( flights, ) and discuss factors that influence demand, elasticity. use United Airlines industry and conduct a demand analysis. In your demand analysis be sure...
-
What are some common legal considerations that business writers must be aware of when creating documents for internal and external use? Discuss the consequences of non-compliance and strategies for...
-
Select a commodity of your choice and assess the factors that determines its market demands with reference books to acknowledge.
-
Discuss the current stage of industrialisation and how it may affect agricultural production (8). Discuss the major differences between LDCs and Developed countries in terms of agricultural...
-
A . A study was conducted to determine whether geographical variations in the use of medical and surgical services could be explained in part by differences in the appropriateness with which...
-
Quadrilateral EFGH is a kite. Find mG. E H <105 G 50 F
-
Identify six items that it should include.
-
What is a share premium reserve?
-
Think of the Japanese innovations and products you are a consumer and a beneficiary of. Critically evaluate their quality against other similar products you are aware of.
-
Baltimore Inc. reported pretax GAAP income of \(\$ 45,000\) in 2020 . In analyzing differences between GAAP income and taxable income, the company determined that it had deducted \(\$ 5,000\) in...
-
Refer to information in Brief Exercise 18-33. Prepare a reconciliation between Baltimore Inc.'s effective and statutory tax rates. Exercise 18-33 Baltimore Inc. reported pretax GAAP income of \(\$...
-
Starbucks Corporation recognized the following amounts in a recent annual report on Form 10-K. a. Calculate the deferred tax asset valuation allowance as a percentage of deferred tax assets for...
Study smarter with the SolutionInn App