The following information was obtained from the accounting records of Sun Ltd, a listed company, for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information was obtained from the accounting records of Sun Ltd, a listed company, for the financial year ended 30 June 20.0: Ordinary share capital (issued at 50cents per share). 12% Long-term loan... 10% Non-cumulative preference shares Retained earnings (1/7/19.9). Machinery and equipment at cost (1/7/19.9). Accumulated depreciation - Machinery and equipment (1/7/19.9).. Revenue (turnover) Other income.. Other expenses (additional information 6 and 9).. Administrative expenses Investments at cost. .1 000 000 190 000 300 000 380 000 160 000 75 000 .3 500 000 11 550 31 960 410 650 245 000 Loan granted to Moon Ltd. Income tax expense 60 000 263 421 Additional information: 1. The long-term loan from Sun Ltd was incurred on 1 January 20.0 and bears interest at 12% per annum. The interest is payable monthly in arrears. The capital portion of the loan is repayable on 31 December 20.4 2. Investments consist of the following: 100 000 Ordinary shares in Star Ltd, purchased at R2 each. Star Ltd's total issued ordinary share capital consists of 1 000 000 ordinary shares. Star Ltd's shares are traded on the JSE and the price on 30 June 20.0 was R2.50 each. This investment was designated as at fair value through other comprehensive income (not held for trading). 30 000 Ordinary shares in Moon Ltd at a cost of R45 000. Moon Ltd's total issued ordinary share capital consists of 50 000 shares. Moon Ltd's shares trade on the JSE and the price on 30 June 20.0 was R1,50 each. The loan to Moon Ltd was granted on 1 July 19.9 at an interest rate of 10% per annum. The interest is payable monthly in arrears and the capital portion of the loan is repayable on 30 June 20.5. Sun Ltd maintained a gross profit percentage of 40% on sales during the year. Administrative expenses consist of the following: R Remuneration of directors and prescribed officers... Auditors' remuneration Travelling expenses. - Fee for audit.. Accountant's salary. Wages. Telephone. Water and electricity Stationery... 180 000 350 12 000 60 000 150 000 3 000 4 200 1 100 QUESTION 8 (continued) The following must still be provided for: The accounting policies note is not required. in equity and applicable notes of Sun Ltd for the year ended 30 June 20.0 in accordance with the requirements of International Financial Reporting Standards (IFRS). Depreciation on machinery and equipment at 20% per annum on the carrying amount. Prepare the statement of profit or loss and other comprehensive income, statement of changes for R5 000. Depreciation is regarded as an operating expense. An ordinary dividend of 5c per share was declared. 9. Resolutions taken and approved at an annual general meeting held on 29 June 20.0 but Other Income consists of the following: Other expenses consist of the following Machinery with a cost of R10 000 and a carrying amount of R4 000 was sold on 2 July 19.9 Comparative figures are not required. 6. FAC2601/103 Interest paid Long-term loan. . Bank overdraft Credit losses written off Sundry expenses 11 000 660 1 300 19 000 7. Dividends received - Star Ltd Moon Ltd. Interest received "Current account Trade and other receivables 1 200 800 - Moon Ltd. Profit on sale of machinery 800 1 750 6 000 1 000 8. not yet executed: REQUIRED: The following information was obtained from the accounting records of Sun Ltd, a listed company, for the financial year ended 30 June 20.0: Ordinary share capital (issued at 50cents per share). 12% Long-term loan... 10% Non-cumulative preference shares Retained earnings (1/7/19.9). Machinery and equipment at cost (1/7/19.9). Accumulated depreciation - Machinery and equipment (1/7/19.9).. Revenue (turnover) Other income.. Other expenses (additional information 6 and 9).. Administrative expenses Investments at cost. .1 000 000 190 000 300 000 380 000 160 000 75 000 .3 500 000 11 550 31 960 410 650 245 000 Loan granted to Moon Ltd. Income tax expense 60 000 263 421 Additional information: 1. The long-term loan from Sun Ltd was incurred on 1 January 20.0 and bears interest at 12% per annum. The interest is payable monthly in arrears. The capital portion of the loan is repayable on 31 December 20.4 2. Investments consist of the following: 100 000 Ordinary shares in Star Ltd, purchased at R2 each. Star Ltd's total issued ordinary share capital consists of 1 000 000 ordinary shares. Star Ltd's shares are traded on the JSE and the price on 30 June 20.0 was R2.50 each. This investment was designated as at fair value through other comprehensive income (not held for trading). 30 000 Ordinary shares in Moon Ltd at a cost of R45 000. Moon Ltd's total issued ordinary share capital consists of 50 000 shares. Moon Ltd's shares trade on the JSE and the price on 30 June 20.0 was R1,50 each. The loan to Moon Ltd was granted on 1 July 19.9 at an interest rate of 10% per annum. The interest is payable monthly in arrears and the capital portion of the loan is repayable on 30 June 20.5. Sun Ltd maintained a gross profit percentage of 40% on sales during the year. Administrative expenses consist of the following: R Remuneration of directors and prescribed officers... Auditors' remuneration Travelling expenses. - Fee for audit.. Accountant's salary. Wages. Telephone. Water and electricity Stationery... 180 000 350 12 000 60 000 150 000 3 000 4 200 1 100 QUESTION 8 (continued) The following must still be provided for: The accounting policies note is not required. in equity and applicable notes of Sun Ltd for the year ended 30 June 20.0 in accordance with the requirements of International Financial Reporting Standards (IFRS). Depreciation on machinery and equipment at 20% per annum on the carrying amount. Prepare the statement of profit or loss and other comprehensive income, statement of changes for R5 000. Depreciation is regarded as an operating expense. An ordinary dividend of 5c per share was declared. 9. Resolutions taken and approved at an annual general meeting held on 29 June 20.0 but Other Income consists of the following: Other expenses consist of the following Machinery with a cost of R10 000 and a carrying amount of R4 000 was sold on 2 July 19.9 Comparative figures are not required. 6. FAC2601/103 Interest paid Long-term loan. . Bank overdraft Credit losses written off Sundry expenses 11 000 660 1 300 19 000 7. Dividends received - Star Ltd Moon Ltd. Interest received "Current account Trade and other receivables 1 200 800 - Moon Ltd. Profit on sale of machinery 800 1 750 6 000 1 000 8. not yet executed: REQUIRED:
Expert Answer:
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
Posted Date:
Students also viewed these accounting questions
-
The following information was obtained from the accounting records of Feddersen Company: Direct materials inventory, beginning .................................................. $ 33,750 Direct...
-
The following information was obtained from the accounting records of Crothers Ltd. Vehicle A Vehicle B Vehicle C Acquisition date Cost Residual value Useful life (in years) Depreciation method 1...
-
The following information was obtained from several accounting and auditing enforcement releases issued by the Securities and Exchange Commission (SEC) after its investigation of fraudulent financial...
-
Find the area under one arch of the cycloid x = a(t - sin t), y = a(1 - cos t).
-
Use Figure 32.11 as a starting point for this problem and consider the initial impact of the following circumstances on the aggregate demand, long-run aggregate supply, and short-run aggregate supply...
-
The large turbine generator industry is a duopoly. The two firms, GE and Westinghouse, compete through Cournot quantity setting competition. The demand curve for the industry is P=100-Q, where P is...
-
A magnet is below a coil, as shown at right. Referring to Figure 25.13 for guidance, what is the direction of the induced current in the coil if The magnet is moving toward the coil? The magnet is...
-
Klose Outfitters Inc. believes that its optimal capital structure consists of 60% common equity and 40% debt, and its tax rate is 40%. Klose must raise additional capital to fund its upcoming...
-
During the current year, Sam Smith sold equipment used in his diner. Information about the sale of equipment is as follows: Sale price $20,000 Original cost 19,000 MACRS depreciation taken 10,000...
-
Partner X is distributed the following in complete liquidation of her partnership interest: Basis FMV Cash $30,000 $30,000 Inventory $30,000 $40,000 Land A $35,000 $20,000 $95,000 $90,000 X had a...
-
Lori has a loan of 80,000 to be paid in 20 level annual payments. The interest and the principal repayment in the 13th payment are equal. Find the amount of principal repaid in the 6th payment.
-
How to do the trial balance for this Explain all steps with description. Date Account, Title and Explanation Debit Credit August1 Cash $6300 Stock Holder's equity 6300 August 1Office Equipment $1200...
-
How do mixed media artists address issues of sustainability, environmental stewardship, and ethical sourcing of materials in their practice, and what strategies do they employ to minimize waste,...
-
Explain the relationship between job satisfaction and other outcomes (e.g., job performance). Analyze the role of job satisfaction in each of these outcomes. Consider the research evidence, and draw...
-
4. Beat frequencies can be used to tune instruments. Flute A is in tune and plays a C (523.3 Hz), while flute B is not in tune and plays what is supposed to be the same note but they don't sound the...
-
Explain how integrating the four lenses helps people to understand how problems in diversity impact others in both professional and personal contexts.
-
If the owner of business withdrawals money for personal use but in performing a bank reconciliation determines that she had neglected to record the withdrawal what accounting entry would be...
-
At the beginning of the year, Lam Ltd. had total assets of $800,000 and total liabilities of $500,000. Use this information to answer each of the following independent questions. (a) If Lam's total...
-
As of January 1, 2011, Alvarado Company wants to acquire a new machine costing $ 196,000. The machine has an estimated useful life of seven years and no salvage value . Alvarados tax rate is 30...
-
What is accumulated comprehensive income on the balance sheet and how is it different from comprehensive income on the statement of owners equity?
-
Assume you have recently been hired to provide investment advice to the manager of Encampment Company. The company has excess cash that it needs to invest, but the manager does not understand how to...
-
Debate: Survey feedback can be a problematic OD technique because it permits people who are affected by organizational policies to generate data that speak against those policies.
-
Describe an example of resistance to change that you have observed. Why did it occur?
-
You have been charged with staffing and organizing an R&D group in a new high-tech firm. What will you do to ensure that the group is innovative?
Study smarter with the SolutionInn App