The following balances were taken from the trial balance of S Stockley as at 31 December 2004.

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The following balances were taken from the trial balance of S Stockley as at 31 December 2004.

From this data, construct the manufacturing account and statement of comprehensive income for the year ended 31 December 2004.image text in transcribed

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1 Inventory was valued at 31 December 2004 as follows:image text in transcribed2 Rent and rates were to be allocated between the factory and the office equally 3 Heating and lighting was allocated between the factory and the office in the ratio of 2/3:1/3 4 Rent and rates prepaid as at 31 December 2004 was £790 5 Heating and lighting prepaid as at 31 December 2004 was £432 6 Office salaries owing as at 31 December 2004 were £5,450 7 Factory equipment was to be depreciated at 25% using the reducing balance method 8 Factory premises were to be depreciated at 2% on cost.

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Frank Woods Business Accounting Basics

ISBN: 9780273725008

1st Edition

Authors: Frank Wood, Mr David Horner

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