Wild Holidays (Pty) Limited is a company that offers various adventure holidays and packages around the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Wild Holidays (Pty) Limited is a company that offers various adventure holidays and packages around the country. The company owns a fleet of vehicles to transport tourists, although it owns none of its own accommodation. Commission is earned from the various lodges and hotels to which tourists are brought. The company has been in operation for 15 years. The Covid-19 pandemic placed immense strain on the business and cash flow but managed to survive due to prior savings and the fact that the company had no debt at the time. Below is a Trial Balance of the business for the year ended 30 June 2022. The Trial Balance is final, except for the following: Depreciation of 25% per annum on the straight-line basis needs to be calculated and recorded on the motor vehicles. Tax is charged at 28% per annum. Share capital Retained income Profit for the year Long-term loan Vehicles at cost Accumulated depreciation - vehicles Trade receivables Trade payables Income received in advance Bank Required: 3.1 Account 3.2 Calculate the following: 3.1.1 3.1.2 3.1.3 The retained income Debit 3 200 000 681 000 5 000 3 886 000 Depreciation on the motor vehicle for the year The tax to be charged on the resultant profit Credit 600 000 5 400 1 384 600 650 000 1 000 000 196 000 50 000 3 886 000 (4) Use the table format below to prepare a Statement of Financial Position for Wild Holidays (Pty) Ltd for the year ended 30 June 2022: Note: show any additional workings. Wild Holidays (Pty) Limited is a company that offers various adventure holidays and packages around the country. The company owns a fleet of vehicles to transport tourists, although it owns none of its own accommodation. Commission is earned from the various lodges and hotels to which tourists are brought. The company has been in operation for 15 years. The Covid-19 pandemic placed immense strain on the business and cash flow but managed to survive due to prior savings and the fact that the company had no debt at the time. Below is a Trial Balance of the business for the year ended 30 June 2022. The Trial Balance is final, except for the following: Depreciation of 25% per annum on the straight-line basis needs to be calculated and recorded on the motor vehicles. Tax is charged at 28% per annum. Share capital Retained income Profit for the year Long-term loan Vehicles at cost Accumulated depreciation - vehicles Trade receivables Trade payables Income received in advance Bank Required: 3.1 Account 3.2 Calculate the following: 3.1.1 3.1.2 3.1.3 The retained income Debit 3 200 000 681 000 5 000 3 886 000 Depreciation on the motor vehicle for the year The tax to be charged on the resultant profit Credit 600 000 5 400 1 384 600 650 000 1 000 000 196 000 50 000 3 886 000 (4) Use the table format below to prepare a Statement of Financial Position for Wild Holidays (Pty) Ltd for the year ended 30 June 2022: Note: show any additional workings.
Expert Answer:
Answer rating: 100% (QA)
Answer 31 Calculations 311 Depreciation on the motor vehicle for the year Depreciation Rate 25 per a... View the full answer
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
Posted Date:
Students also viewed these finance questions
-
4. Answer whether each of the following statements is correct and explain your argument. Total: 20 marks. (a) According to CAPM, the expected return of a risky asset is larger than the risk free...
-
Global Testing Geneva Ltd. Background. The Global Testing Geneva (GTG) was established in Switzerland in 1893, by two brothers who married into a wealthy family organization. The company had...
-
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...
-
According to Electronic Designs 2012 Engineering Salary Survey, the mean base salary of a software engineering manager is $126,417the highest mean among all types of engineers. In contrast, a...
-
Jantzen Companys income statement contained the condensed information below. Jantzens balance sheet contained the comparative data at December 31. Accounts payable pertain to operating expenses....
-
The authorized and issued share capital of Forward Ltd as at 31 May 20X0 was 150,000 equity shares of 1 each, fully paid. On 1 June 20X0, the authorized share capital was increased to 225,000 divided...
-
JDLs average collection period is: (a) 6 days. (b) 11 days. (c) 16 days. (d) 22 days. JDL Corporation Selected Financial Data, December 31, 2024 Current assets $150,000 Current liabilities 100,000...
-
On January 1, 2014, the ledger of Zaur Company contains the following liability accounts. Accounts Payable .......... $42,500 Sales Taxes Payable ......... 5,800 Unearned Service Revenue ..........
-
Let A = {lime, berry, cantaloupe), B = {lemon, grapefruit, orange), and C = {berry, peach, pear, kiwi}. (a) Find (i) n(AUB), (ii) n(AUC), and (iii) n(BUC). (b) In which case is the number of elements...
-
John Wallace is an automotive enthusiast. He has over 25 years of experience as a mechanic for the dealership of a large car manufacturer in Oakville. John also gained experience doing minor body...
-
Partner Peter is retiring in midyear from Apostles Partnership due to his family relocation. Physical distance will prevent him from coping with the daily rigors of their fashion and beauty...
-
What are the key decision variables at the firms disposal for managing the level of the firms accounts receivable balance?
-
What are the statistical properties of the error term, or e, in a regression model? How should the regression coefficient be interpreted? How should the intercept be interpreted from both a...
-
Describe the types of inventory that firms have.
-
Differentiate between permanent and temporary assets. Which of them is usually used in working capital?
-
What are the main determinants of net working capital?
-
2. (5 marks) Suppose that the distribution of claim frequency N and claim severity X are given as following. N012 X 1 2 3 Prob. 0.5 0.3 0.2 Prob. 0.4 0.4 0.2 (A) Calculate E[X + X] assuming that X,...
-
The Smiths buy a house. They borrow 80 percent of the purchase price from the local ABC Savings and Loan. Before they make their first payment, ABC transfers the right to receive mortgage payments to...
-
Bell Electrical Services is organized into three division: Metro, Suburan and Regional. Data for these divisions for last year were as follows: In addition to the expenses listed above, the company...
-
The prices of our consulting services are determined by whatever our competitors charge for similar services. Costs are irrelevant. Do you agree with this statement? Explain your answer.
-
Refer to the information provided in Exercise 8.25. For each of the activities identified, indicate whether it represents a unit-level, batch-level, product-level, or facility-level activity? Explain...
-
A certain radioactive element has a half-life of 1 hour. If you start with a 1-g sample of the element at noon, how much of this same element will be left at 3:00 pm? (a) 0.5 g (b) 0.25 g (c) 0.125 g...
-
Is it possible for a hydrogen nucleus to emit an alpha particle? Why? (a) yes, because alpha particles are the simplest form of radiation (b) no, because it would require the nuclear fission of...
-
Which type of radiation from cosmic sources predominates on the inside of a high-flying commercial airplane? (a) alpha (b) beta (c) gamma (d)None of these predominates; all three are abundant.
Study smarter with the SolutionInn App