The trial balance of GITMO Limited as at 31st December, 2016 is as follows: Trade Receivables:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The trial balance of GITMO Limited as at 31st December, 2016 is as follows: Trade Receivables: Trade Payables Cash and bank Revenue Purchases Inventory (1/1/2016). Distribution costs Administration expenses Ordinary shares (GH¢0.50) Revaluation surplus 5% Redeemable preference shares (2019) 5% Loan Notes Property, Plant and Equipment Investment property Rental income from investment property Retained profits (1/1/2016) Loan interest paid Preference dividend paid Interim ordinary dividend paid Corporate Tax Suspense Debit GH¢ 49,600 1 32,400 (iii) (iv) Show clearly all relevant workings. 80,000 32,000 32,000 62,200 300,000 36,000 1,600 1,800 6,400 2,000 636,000 Credit GH¢ 80,000 200,000 208,000 32,000 36,000 32,000 4,000 12,000 The following is to be taken into account: 1. The inventory at cost on 31st December, 2016 was GH¢58,000 and the net realizable value was GH 48,000. 2. The Property, Plant and Equipment include a building whose net book value is currently GH 20,000 is to be revalued to GH 36,000. 3. Depreciation charges for the year ended 31st December 2016 amounted to GH 3,200. This figure should be included in the administrative expense. 4. The directors have decided to make an allowance for doubtful debts of 4% of trade receivables. This amount should be charged to administrative expense. 5. The balance on the corporation tax account represents an under provision of tax for the previous year. Tax for the current year is estimated at GH€ 12,000. 6. The investment property was acquired in January, 2016. The rental income from the investment property GH4,000 relates to the four-year period ending 31st December, 2019. The company adopts fair value model in subsequent measurement of the investment property and fair value assessment at 31st December, 2016 puts the valuation at GH¢48,000. 32,000 636,000 7. The suspense account represents the corresponding credit for cash received for a fully subscribed issue of ordinary shares made on 30th December, 2016. The terms of the share issue was 8,000 new ordinary shares were issued at GH¢4.00 each. Required: In compliance with the Companies' Code provisions and in conformity with relevant International Financial Reporting Standards, prepare for publication; (1) The statement of profit or loss and other comprehensive income for the year ended 31" December, 2016. The statement of changes in equity for the year ended 31st December, 2016. The statement of financial position as at 31st December, 2016. The trial balance of GITMO Limited as at 31st December, 2016 is as follows: Trade Receivables: Trade Payables Cash and bank Revenue Purchases Inventory (1/1/2016). Distribution costs Administration expenses Ordinary shares (GH¢0.50) Revaluation surplus 5% Redeemable preference shares (2019) 5% Loan Notes Property, Plant and Equipment Investment property Rental income from investment property Retained profits (1/1/2016) Loan interest paid Preference dividend paid Interim ordinary dividend paid Corporate Tax Suspense Debit GH¢ 49,600 1 32,400 (iii) (iv) Show clearly all relevant workings. 80,000 32,000 32,000 62,200 300,000 36,000 1,600 1,800 6,400 2,000 636,000 Credit GH¢ 80,000 200,000 208,000 32,000 36,000 32,000 4,000 12,000 The following is to be taken into account: 1. The inventory at cost on 31st December, 2016 was GH¢58,000 and the net realizable value was GH 48,000. 2. The Property, Plant and Equipment include a building whose net book value is currently GH 20,000 is to be revalued to GH 36,000. 3. Depreciation charges for the year ended 31st December 2016 amounted to GH 3,200. This figure should be included in the administrative expense. 4. The directors have decided to make an allowance for doubtful debts of 4% of trade receivables. This amount should be charged to administrative expense. 5. The balance on the corporation tax account represents an under provision of tax for the previous year. Tax for the current year is estimated at GH€ 12,000. 6. The investment property was acquired in January, 2016. The rental income from the investment property GH4,000 relates to the four-year period ending 31st December, 2019. The company adopts fair value model in subsequent measurement of the investment property and fair value assessment at 31st December, 2016 puts the valuation at GH¢48,000. 32,000 636,000 7. The suspense account represents the corresponding credit for cash received for a fully subscribed issue of ordinary shares made on 30th December, 2016. The terms of the share issue was 8,000 new ordinary shares were issued at GH¢4.00 each. Required: In compliance with the Companies' Code provisions and in conformity with relevant International Financial Reporting Standards, prepare for publication; (1) The statement of profit or loss and other comprehensive income for the year ended 31" December, 2016. The statement of changes in equity for the year ended 31st December, 2016. The statement of financial position as at 31st December, 2016.
Expert Answer:
Answer rating: 100% (QA)
Yomi Limited Statement of Cashflows For the period ending 31122016 Cashflow fro... View the full answer
Related Book For
Introduction To Financial Accounting
ISBN: 9781526803009
9th Edition
Authors: Anne Marie Ward, Andrew Thomas
Posted Date:
Students also viewed these accounting questions
-
The trial balance of Building Blocks Child Care, Inc., does not balance. The following errors are detected: a. Cash is understated by $4,000. b. A $2,000 debit to Accounts receivable was posted as a...
-
The following accounts were taken from the trial balance of Cole Company as of December 31, 2011: Sales .................... $70,000 Interest Revenue ................. 3,000 Equipment...
-
At December 31, 2010, the trial balance of Olpe Company contained the following amounts before adjustment. Instructions (a) Prepare the adjusting entry at December 31, 2010, to record bad debts...
-
Consider a situation with J identical firms that have marginal abatement cost functions for j=1,,J. The marginal damage function is equal to D'(E)=d.EDetermine the optimal allocation and the optimal...
-
Premium Obligation On the back of its cereal boxes, the Tiger Cereal Company offers a premium to its customers. The premium, a toy truck, may be claimed by sending in $1 plus 10 coupons; one coupon...
-
Outline how the genetic message in a gene is translated to produce a polypeptide. Include the roles of the gene, messenger RNA, ribosomes, and transfer RNA.
-
On the Internet, find a current crime that might victimize you. What steps should you take to avoid harm?
-
Vibrant Company had $ 850,000 of sales in each of three consecutive years 2012 2014, and it purchased merchandise costing $ 500,000 in each of those years. It also maintained a $ 250,000 physical...
-
. Information Flag (6 marks) You are the audit senior in charge of the audit of Big-Boi Skatery, a question distributor of skateboards. You have just been told that the junior accountant...
-
Think about your school or local library and the processes involved in checking out books, signing up new borrowers, and sending out overdue notices, all from the librarys perspective. Describe three...
-
(8) Jun Wei received 2^(13) copies of junk emails, Each email consisted of 2^(11) bytes of data, Find the total number of bytes of data he received and express your answer in index 1 answer
-
The school newspaper editor estimates that the fixed cost of an edition is $15,000. The variable cost is $0.30 per copy. a. What is the projected cost of an edition if 3,000 copies are produced? b....
-
The Itagi Computer Company based in Japan is looking to build an integrated circuit manufacturing facility in the US. Itagi Computer is concerned about the safety and well-being of its employees and...
-
The fixed cost of trucking a load of potatoes is $50. The variable cost is $0.50 per kilometer. How much is the estimated cost of trucking a load of potatoes 500 kilometers?
-
A large public accounting firm, reporting findings of a survey on corporate directors compensation, remarked, Since there are usually greater growth rates in smaller companies, share options offer...
-
A grocery retailer is deciding how to use a particular space in the store. One option is to lease a freezer to put in the space and sell a variety of ice cream treats. The ice cream treats should...
-
Confusing conditioning: Classical and operant - YouTube Ethical concerns about the use of positive and negative reinforcement are similar and arise from the severity of the EO that occasions behavior...
-
Burberrys competitive advantage is through its differentiation strategy. What risk should Burberry remain aware of?
-
Veronica is the owner of a manufacturing business. The following trial balance was extracted from her books as at 31 December 20X4: The following information was also made available: 1. Expenses are...
-
Parhold plc has bought for cash of 12 million all the voting shares of Subsid plc, whose net assets have been valued at 10 million. Describe how this transaction would affect: a. The statement of...
-
Joe Jones is an entrepreneurial student who decides to earn some funds to subsidise his studies. He purchases 25kg bags of potatoes and re-bags them into smaller 2.5kg bags and then sells them at the...
-
Sage, Inc. bought 40% of Adams Corporations outstanding common stock on January 2, 2008 for \($400,000.\) The carrying amount of Adams net assets at the purchase date totaled \($900,000\). Fair...
-
In January 2008, Harold Corporation acquired 20% of Otis Companys outstanding common stock for \($400,000.\) This investment gave Harold the-ability to exercise significant influence over Otis. The...
-
On April 1, 2008, Dart Company paid \($620,000\) for all issued and outstanding common stock of Wall Corporation in a transaction properly accounted for as a purchase. Walls recorded assets and...
Study smarter with the SolutionInn App