(a) A trial balance for Stream as at 31 December 20X1 is presented below. Dr Cr...

 

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(a) A trial balance for Stream as at 31 December 20X1 is presented below. Dr Cr $ $ 492,000 Revenue Purchases Cash at bank Purchase returns Administrative expenses Vehicles - cost Vehicles -accumulated depreciation at 1 January 20X1 Trade receivables Allowance for receivables - 1 January 20X1 Inventory - 1 January 20X1 Distribution costs Share capital Share premium Trade payables Retained earnings - 1 January 20X1 Overdraft Finance costs Required: Calculate the following figures Inventory on the SOFP Administrative expenses 210,000 25,000 - Distribution costs Cost of sales 150,000 290,000 26,000 15,000 67,000 Revenue Gross profit 5,000 75,000 4,000 Inventory as at 31 December 20X1 has a cost of $50,000. Depreciation on vehicles is charged on a straight-line basis at a rate of 30% per annum. 15,000 35,000 25,000 132,000 5,000 This is charged to distribution costs. The allowance for receivables should be increased by $4,500. Any impact on profit or loss should be included in administrative expenses. 5,000 788,000 788,000 (12 marks) (a) A trial balance for Stream as at 31 December 20X1 is presented below. Dr Cr $ $ 492,000 Revenue Purchases Cash at bank Purchase returns Administrative expenses Vehicles - cost Vehicles -accumulated depreciation at 1 January 20X1 Trade receivables Allowance for receivables - 1 January 20X1 Inventory - 1 January 20X1 Distribution costs Share capital Share premium Trade payables Retained earnings - 1 January 20X1 Overdraft Finance costs Required: Calculate the following figures Inventory on the SOFP Administrative expenses 210,000 25,000 - Distribution costs Cost of sales 150,000 290,000 26,000 15,000 67,000 Revenue Gross profit 5,000 75,000 4,000 Inventory as at 31 December 20X1 has a cost of $50,000. Depreciation on vehicles is charged on a straight-line basis at a rate of 30% per annum. 15,000 35,000 25,000 132,000 5,000 This is charged to distribution costs. The allowance for receivables should be increased by $4,500. Any impact on profit or loss should be included in administrative expenses. 5,000 788,000 788,000 (12 marks)

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Inventory on the SOFP Administrative Expenses including Allowances for ... View the full answer