Where did the figures for admin and depreciation come from/calculated on the profit and loss account from
Fantastic news! We've Found the answer you've been seeking!
Question:
Where did the figures for admin and depreciation come from/calculated on the profit and loss account from the Trial balance and additional information below:
Transcribed Image Text:
On 31st March 2020, North West plc produced the following trial balance- £ £ Accounts payable Accounts receivable Administration expenses Bank Land and Buildings Land and Buildings accumulated depreciation Share Capital Computer equipment Computer equipment accumulated depreciation Delivery vehicles Delivery vehicles accumulated depreciation 400,000 15,000 220,000 500,000 120,000 180,000 20,000 300,000 190,000 150,000 Inventories as at start of year Long term loan (10%) Provision for doubtful debts as at start of year Purchases Retained earnings Salaries Sales revenue Sundry expenses Accounts payable The following information is to be considered- • The provision for doubtful debts as at the end of the period is £10,000 • The inventory value at 31 March 2019 is £140,000 • Electricity is invoiced quarterly. The next quarter is due to end 31 April 2019. The average quarterly bill is £4,500 • Computer equipment is to be depreciated by 10% reducing balance method. • Delivery Vehicles are to be depreciated by 5% straight line method. • Included in Land and Buildings cost is land that has a cost of £60,000. Depreciate is on a 10% straight line basis 35,000 1,980,000 100,000 100,000 50,000 50,000 200,000 5,000 125,000 1,200,000 1,980,000 150,000 • Interest on loan for the year had not been paid at the year end and appropriate adjustments need to be made to include this in the accounts. • Included in Administration Expenses is Machine Insurance. The policy had a cost of £24,000 and runs from 1 August 2019-31 July 2020. The full amount was paid in cash On 31st March 2020, North West plc produced the following trial balance- £ £ Accounts payable Accounts receivable Administration expenses Bank Land and Buildings Land and Buildings accumulated depreciation Share Capital Computer equipment Computer equipment accumulated depreciation Delivery vehicles Delivery vehicles accumulated depreciation 400,000 15,000 220,000 500,000 120,000 180,000 20,000 300,000 190,000 150,000 Inventories as at start of year Long term loan (10%) Provision for doubtful debts as at start of year Purchases Retained earnings Salaries Sales revenue Sundry expenses Accounts payable The following information is to be considered- • The provision for doubtful debts as at the end of the period is £10,000 • The inventory value at 31 March 2019 is £140,000 • Electricity is invoiced quarterly. The next quarter is due to end 31 April 2019. The average quarterly bill is £4,500 • Computer equipment is to be depreciated by 10% reducing balance method. • Delivery Vehicles are to be depreciated by 5% straight line method. • Included in Land and Buildings cost is land that has a cost of £60,000. Depreciate is on a 10% straight line basis 35,000 1,980,000 100,000 100,000 50,000 50,000 200,000 5,000 125,000 1,200,000 1,980,000 150,000 • Interest on loan for the year had not been paid at the year end and appropriate adjustments need to be made to include this in the accounts. • Included in Administration Expenses is Machine Insurance. The policy had a cost of £24,000 and runs from 1 August 2019-31 July 2020. The full amount was paid in cash On 31st March 2020, North West plc produced the following trial balance- £ £ Accounts payable Accounts receivable Administration expenses Bank Land and Buildings Land and Buildings accumulated depreciation Share Capital Computer equipment Computer equipment accumulated depreciation Delivery vehicles Delivery vehicles accumulated depreciation 400,000 15,000 220,000 500,000 120,000 180,000 20,000 300,000 190,000 150,000 Inventories as at start of year Long term loan (10%) Provision for doubtful debts as at start of year Purchases Retained earnings Salaries Sales revenue Sundry expenses Accounts payable The following information is to be considered- • The provision for doubtful debts as at the end of the period is £10,000 • The inventory value at 31 March 2019 is £140,000 • Electricity is invoiced quarterly. The next quarter is due to end 31 April 2019. The average quarterly bill is £4,500 • Computer equipment is to be depreciated by 10% reducing balance method. • Delivery Vehicles are to be depreciated by 5% straight line method. • Included in Land and Buildings cost is land that has a cost of £60,000. Depreciate is on a 10% straight line basis 35,000 1,980,000 100,000 100,000 50,000 50,000 200,000 5,000 125,000 1,200,000 1,980,000 150,000 • Interest on loan for the year had not been paid at the year end and appropriate adjustments need to be made to include this in the accounts. • Included in Administration Expenses is Machine Insurance. The policy had a cost of £24,000 and runs from 1 August 2019-31 July 2020. The full amount was paid in cash On 31st March 2020, North West plc produced the following trial balance- £ £ Accounts payable Accounts receivable Administration expenses Bank Land and Buildings Land and Buildings accumulated depreciation Share Capital Computer equipment Computer equipment accumulated depreciation Delivery vehicles Delivery vehicles accumulated depreciation 400,000 15,000 220,000 500,000 120,000 180,000 20,000 300,000 190,000 150,000 Inventories as at start of year Long term loan (10%) Provision for doubtful debts as at start of year Purchases Retained earnings Salaries Sales revenue Sundry expenses Accounts payable The following information is to be considered- • The provision for doubtful debts as at the end of the period is £10,000 • The inventory value at 31 March 2019 is £140,000 • Electricity is invoiced quarterly. The next quarter is due to end 31 April 2019. The average quarterly bill is £4,500 • Computer equipment is to be depreciated by 10% reducing balance method. • Delivery Vehicles are to be depreciated by 5% straight line method. • Included in Land and Buildings cost is land that has a cost of £60,000. Depreciate is on a 10% straight line basis 35,000 1,980,000 100,000 100,000 50,000 50,000 200,000 5,000 125,000 1,200,000 1,980,000 150,000 • Interest on loan for the year had not been paid at the year end and appropriate adjustments need to be made to include this in the accounts. • Included in Administration Expenses is Machine Insurance. The policy had a cost of £24,000 and runs from 1 August 2019-31 July 2020. The full amount was paid in cash
Expert Answer:
Answer rating: 100% (QA)
1 Administration Expenses Machine Insurance Policy cost for the year 24000 Time covered by the policy within the financial year 8 months Remaining cos... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Prepare a set of profile leveling notes for the data listed and show the page check. All data is given in feet. The elevation of BM A is 1364.58, and the elevation of BM B is 1349.26. Rod readings...
-
The voltage across a 4-H inductor is given by the waveform shown in figure. Find the waveform for the current in the inductor v(t) = 0, t v(t) (mv), 2.4 40 50 t (ms) 10 20 30
-
A 50-g pencil (uniform slender rod) falls down onto the table with a velocity of 0.2 m/s just before impact. If it is at an angle of 60 with the horizontal, and it does not slip during the impact,...
-
Pressure, volume, temperature and entropy are (a) Energy properties (b) Derived properties (c) Reference properties (d) None of these.
-
Adams Corporation acquired 90 percent of the outstanding voting shares of Barstow, Inc., on December 31, 2009. Adams paid a total of $603,000 in cash for these shares. The 10 percent noncontrolling...
-
On April 1, 2024, Blossom Company purchased 38,400 common shares in Ecotown Ltd. for $17 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10...
-
Multiple regression is used by accountants in cost analysis to shed light on the factors that cause costs to be incurred and the magnitudes of their effects. Sometimes, it is desirable to use...
-
Discuss the importance of party influence and party unity in Congress. Why have the congressional parties become more ideologically polarized?
-
A machine has an initial cost of Php 5 0 , 0 0 0 . 0 0 and asalvage value of Php 1 0 , 0 0 0 . 0 0 after 1 0 years. Whatis the straight - line depreciation rate as a percentageof the initial cost?
-
How do organizations foster a climate of psychological safety and trust through the cultivation of emotional intelligence, creating an environment where individuals feel empowered to express their...
-
A company just spent 1 0 0 0 on a new equipment which will be depreciated straight - line over the next 5 years. what is the annual depreciation tax shield if tax rate is 2 0 %?
-
You buy a computer game for $ 5 0 using your credit card, receive $ 9 0 in wages from your casual job and you receive $ 2 0 in interest on a savings account. Calculate the overall effect of these...
-
How do hegemonic power structures manifest within contemporary political frameworks, and what strategies can marginalized groups employ to challenge and reshape these dynamics
-
Find the solution to the boundary value problem: The solution is y= d'y 10dy dt +21y = 0, y(0) = 1, y(1)=9
-
Give an example of transitory income. What effect does this income have on the marginal propensity to consume?
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
How are qualified dividends taxed in 2012? Please give the two rates of tax which apply to qualified dividends, and specify when each of these rates applies._________________________...
-
Steve Jackson (age 51) is a single taxpayer living at 3215 Pacific Dr., Del Mar, CA 92014. His Social Security number is 465-88-9415. In 2012, Steve's earnings and income tax withholding as the...
-
A wheel of radius \(r\) rolls on a flat surface without slipping. Determine the angular motion of the wheel in terms of the linear motion of its center \(O\). Also determine the acceleration of a...
-
The right-angle bar rotates clockwise with an angular velocity which is decreasing at the rate of \(4 \mathrm{rad} / \mathrm{s}^{2}\). Write the vector expressions for the velocity and acceleration...
-
The load \(L\) is being hoisted by the pulley-and-cable arrangement shown. Each cable is wrapped securely around its respective pulley so it does not slip. The two pulleys to which \(L\) is attached...
Study smarter with the SolutionInn App