QUESTION 1 1. The Following balances were obtained from the books of The Future Ink Company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
QUESTION 1 1. The Following balances were obtained from the books of The Future Ink Company LTD for the year ending March 31, 2021 DETAILS General Reserve Building 10% Debenture Sales Purchases Camage Inwards Delivery Charges Salesmen Salary Rent and Rates Insurance Light and Heating Repairs and Maintenance Office Salaries Salesmen Commission Auditors fees Directors fees Interim Ord Shares Dividend 120 Furniture and fittings Provision for Depreciation (Furniture & Fittings) Ord. Share capital @ $0.50 Provision for Bad Debt. Debtors Creditors Goodwill Stock at April 1,2020 Retained earnings b/d Interest Paid Short Term Deposits Cash at Bank 10% Pref Shares ITE DR 75000 2800000 4000 15000 80000 100000 14700 12300 21200 50000 17400 1500 20000 4000 82000 160000 300000 80000 3500 10000 150950 CR 50,000 70000 3,500000 32800 100000 13000 180000 -35750 20000 4.001 550 4.001.550 Additional Information Included: 1. Furniture and Fittings is to be depreciated by 5% on cost 2. Repairs and Maintenance is owing by 3000 3. Salesman commission is owing for 2,000 4. Corporation tax is estimated at 75000 5. Stock at year end is valued at 100,000 6. Final ordinary dividends at 5c per share, as well as the preference share dividends should be accounted for this year 7 The provision for bad debt is to be adjusted to 10% of debtors 8. Write off 25% of goodwill 9 Transfer 15000 to general reserves Prepare the following: 1. The statement of profit and loss for the year ending March 31, 2021 Marks -20 2. The statement of changes in equity for the year ending March 31,2021 Marks=5 3. The statement of financial position as at March 31,2021 Marks = 15 QUESTION 1 1. The Following balances were obtained from the books of The Future Ink Company LTD for the year ending March 31, 2021 DETAILS General Reserve Building 10% Debenture Sales Purchases Camage Inwards Delivery Charges Salesmen Salary Rent and Rates Insurance Light and Heating Repairs and Maintenance Office Salaries Salesmen Commission Auditors fees Directors fees Interim Ord Shares Dividend 120 Furniture and fittings Provision for Depreciation (Furniture & Fittings) Ord. Share capital @ $0.50 Provision for Bad Debt. Debtors Creditors Goodwill Stock at April 1,2020 Retained earnings b/d Interest Paid Short Term Deposits Cash at Bank 10% Pref Shares ITE DR 75000 2800000 4000 15000 80000 100000 14700 12300 21200 50000 17400 1500 20000 4000 82000 160000 300000 80000 3500 10000 150950 CR 50,000 70000 3,500000 32800 100000 13000 180000 -35750 20000 4.001 550 4.001.550 Additional Information Included: 1. Furniture and Fittings is to be depreciated by 5% on cost 2. Repairs and Maintenance is owing by 3000 3. Salesman commission is owing for 2,000 4. Corporation tax is estimated at 75000 5. Stock at year end is valued at 100,000 6. Final ordinary dividends at 5c per share, as well as the preference share dividends should be accounted for this year 7 The provision for bad debt is to be adjusted to 10% of debtors 8. Write off 25% of goodwill 9 Transfer 15000 to general reserves Prepare the following: 1. The statement of profit and loss for the year ending March 31, 2021 Marks -20 2. The statement of changes in equity for the year ending March 31,2021 Marks=5 3. The statement of financial position as at March 31,2021 Marks = 15
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
The following balances were taken from the books of Schimank Corp. on December 31, 2014. Assume the total effective tax rate on all items is 34%. Instructions Prepare a multiple-step income...
-
The following balances were taken from the books of the Big Track Trucking Company Limited on December 31, 2014: Assume the total effective tax rate on all items is 25%. Instructions Prepare a...
-
The following balances were taken from the books of Parnevik ASA on December 31, 2019. Assume the total effective tax rate on all items is 34%. Instructions Prepare an income statement; 100,000...
-
= 0.5. The p.d.f. for the waiting time X until an event occurs often follows the exponential distribution (to be studied in Section 7.6), with the form g(x) = e-x for some positive value of , defined...
-
Shown below are the top food and drug stores in the United States in a recent year according to Fortune magazine. Company Revenues ($ billions) Kroger ...........66.11 Walgreen ..........47.41...
-
A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for 8 years. (a) If they can invest at 8%, compounded semiannually, how much do they need to invest at...
-
Identify at least three grounds for an involuntary dismissal of an action.
-
On March 1, a securities analyst recommended General Cinema stock as a good purchase in the early summer. The portfolio manager plans to buy 20,000 shares of the stock on June 1 but is concerned that...
-
In a gear train, as shown in Fig.15.12, gear B is connected to the input shaft. The arm A carryingthe compound wheels D and E, turns freely on the output shaft. If the input speed is 1200...
-
Cost Center D within the Welding Department of the Mizer Corporation collected the following data during 2004. Cost Center D Overhead Expenses: \($4,800\) Cost Center D Direct Labor Hours: 2,800 Cost...
-
Use a structural method prepare the following for the proposed Web-site below 1. Data dictionary 2. Process description
-
Extrinsic motivators include such things as a. doing work that you enjoy. b. believing your opinion matters. c. knowing there is a large financial bonus for good work. d. working for a company whose...
-
When in your life have you been motivated by external factors like rewards, money, or promotion? In what kind of setting would the combination of autonomy, mastery, and purpose be more successful in...
-
You have just been assigned a position on a virtual team. What specific strategies would you focus on to be a strong, contributing member of the team? Are there specific skills you would need to...
-
The performance review process often includes all of the following except a. an evaluation of the employees social standing in the work environment. b. an assessment of the employees relative to the...
-
Using the Internet, access the annual reports of three companies in different industries. How are human resources issues handled in the annual report? What kind of HR issues do the reports discuss?...
-
Dealerable Car Company, an auto manufacturer, produces 3 models of its vehicle: basic, deluxe, and limited. Management has determined the following information about its resources and activities....
-
A copper wire (density = 8.96 g/cm 3 ) has a diameter of 0.25 mm. If a sample of this copper wire has a mass of 22 g, how long is the wire?
-
Botticelli Inc. was organized in late 2012 to manufacture and sell hosiery. At the end of its fourth year of operation, the company has been fairly successful, as indicated by the following reported...
-
What are initial direct costs and how are they accounted for?
-
Distinguish between product costs and period costs as they relate to inventory.
-
What motivates sales executives and finance and accounting executives to participate in activities that result in inaccurate reporting of revenues?
-
Suppose that Robert Jones purchases a \(\$ 100\) gift card at Best Buy on December 24, 2009, and gives it to his wife Mary Jones on December 25, 2009. On January 3, 2010, Mary uses the card to...
-
During the summer, Willard Kelly does a variety of small jobs for many different people in the community to earn money. Mr. Kelly keeps all his money in a single checking account. He writes checks to...
Study smarter with the SolutionInn App