The list of balances of Okadigbo, a limited liability company, at 30 September 20X9 was as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The list of balances of Okadigbo, a limited liability company, at 30 September 20X9 was as follows: Accumulated profit, 1 October 20X8 Ordinary shares Preferred shares Bank overdraft Factory - cost and depreciation Office equipment - cost and depreciation Delivery vehicles - cost and depreciation Inventory at 30 September 20X8 Receivables ledger control account Payables ledger control account Factory wages and overheads Administration salaries Purchases Revenue Distribution costs 183/4% loan (repayable 20Y3) Trial balance difference # 40,400 34,776 19,721 31,332 27,221 62,731 20,844 237,411 16,423 1,063 491,922 # 13,831 20,000 20,000 10,586 7,389 18,456 4,681 19,794 371,935 5,250 491,922 The following further information should be allowed for: (1) Annual depreciation should be charged at 2.5% on the cost of the factory, at 15% of the written down value of the office equipment and at 25% of the written down value of the delivery vehicles. (2) Three errors have occurred in recording transactions in the sales day book in September 20X9: Invoices with a value of #1,427 have been posted twice A credit note for #147 has been treated as an invoice Credit sales for September totalled #18,421, but have been posted to the revenue account as #18,241. (3) A contra between a receivables ledger and a payables ledger account for #43 has only been reflected in the receivables ledger control account. (4) A preferred dividend of #1,200 was paid on 28 September 20X9, and entered in the cash book, but not posted to the general ledger. (5) The directors propose an ordinary dividend of 25% of the profit after charging the preferred dividend. Inventory at 30 September 20X9 amounted to N29,371. (6) (7) Loan interest is to be accrued for the year ended 30 September 20X9. Required (a) Prepare journal entries, including narrative, to correct the trial balance difference. You are not required to write up a suspense account. (b) Prepare the company's statement of profit or loss for the year ended 30 September 20X9 and a statement of financial position as at 30 September 20X9 in accordance with International Accounting Standard 1, insofar as the information allows. Notes to the accounts are not required. Ignore taxation. The list of balances of Okadigbo, a limited liability company, at 30 September 20X9 was as follows: Accumulated profit, 1 October 20X8 Ordinary shares Preferred shares Bank overdraft Factory - cost and depreciation Office equipment - cost and depreciation Delivery vehicles - cost and depreciation Inventory at 30 September 20X8 Receivables ledger control account Payables ledger control account Factory wages and overheads Administration salaries Purchases Revenue Distribution costs 183/4% loan (repayable 20Y3) Trial balance difference # 40,400 34,776 19,721 31,332 27,221 62,731 20,844 237,411 16,423 1,063 491,922 # 13,831 20,000 20,000 10,586 7,389 18,456 4,681 19,794 371,935 5,250 491,922 The following further information should be allowed for: (1) Annual depreciation should be charged at 2.5% on the cost of the factory, at 15% of the written down value of the office equipment and at 25% of the written down value of the delivery vehicles. (2) Three errors have occurred in recording transactions in the sales day book in September 20X9: Invoices with a value of #1,427 have been posted twice A credit note for #147 has been treated as an invoice Credit sales for September totalled #18,421, but have been posted to the revenue account as #18,241. (3) A contra between a receivables ledger and a payables ledger account for #43 has only been reflected in the receivables ledger control account. (4) A preferred dividend of #1,200 was paid on 28 September 20X9, and entered in the cash book, but not posted to the general ledger. (5) The directors propose an ordinary dividend of 25% of the profit after charging the preferred dividend. Inventory at 30 September 20X9 amounted to N29,371. (6) (7) Loan interest is to be accrued for the year ended 30 September 20X9. Required (a) Prepare journal entries, including narrative, to correct the trial balance difference. You are not required to write up a suspense account. (b) Prepare the company's statement of profit or loss for the year ended 30 September 20X9 and a statement of financial position as at 30 September 20X9 in accordance with International Accounting Standard 1, insofar as the information allows. Notes to the accounts are not required. Ignore taxation.
Expert Answer:
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
Posted Date:
Students also viewed these accounting questions
-
Based on the information in the Botox Mini- Case, what would happen to the equilibrium price and quantity if the government had set a price ceiling of $ 200 per vial of Botox? What welfare effects...
-
Based on the information in Table 12-2, and assuming a trade ratio of four DVDs for three pairs of shoes, what would the production possibilities curve (without trade) and the consumption...
-
Based on the information in Exercise 5.22, if a person is known to travel a one-way distance of at least 11 miles to work, determine the probability that he or she drives at least 31 miles to work....
-
1. A man digs 3 cubic feet per minute. Express the digging rate in cubic meters per hour. = ( 0 . 3 0 5 f t A ) 0 . 3 4 B ) 2 . 3 4 C ) 3 6 . 2 D ) 1 6 7 . 4 E ) 6 4 0 0 2. The x -...
-
Manually find the future value of an annuity due of $2,700 per year for three years at 4.5% annual interest?
-
What is a line of credit?
-
Steven Sanchez worked as a warehouse employee for Gruma Corporation. In December 2016, Sanchez was presented an arbitration agreement during a meeting with George Tate, the human resources manager...
-
Presented below is an aging schedule for Bosworth Company. At December 31, 2013, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,000. Instructions (a) Journalize and post...
-
Q6). For the Given Functions determine the following a). f(x) = 3 x2+2x-1 What is f(-2). Show your work 0 What is a). f(-2)= b). f(0), c). f(-1)
-
Maggie's Magazines (MM) has straight nonconvertible bonds that currently yield 9%. MM's stock sells for $22 per share, has an expected constant growth rate of 6%, and has a dividend yield of 4%. MM...
-
The probability that a missile hits a target successfully is 0.75. In order to destroy the target completely, at least three successful hits are required. Then the minimum number of missiles that...
-
1. Do Gaussian elimination on A to convert A into an upper triangular matrix. Show matrices obtained after each step of Gaussian elimination. 2. Do Gaussian elimination on A to convert A into a lower...
-
Question 1 The following is the trial balance of Jollybee Bhd. (Jollybee), a public listed company as at 31 August 2021: Carrying value at 31 August 2021: - Freehold property - Leasehold property -...
-
Your broker charges $0.0017 per share per trade. The exchange charges $0.0101 per share per trade for removing liquidity and credits $0.0083 per share per trade for adding liquidity. The current best...
-
Hogwarts has 4 houses (Gryffindor, Hufflepuff, Ravenclaw,Slytherin). We can represent them by their first letters G H R S.Each house has exactly 20 students. If I choose 5 studentsrandomly, what is...
-
The silver urn contains nine black balls and four brown balls. The golden urn contains five red balls, three yellow balls, and four blue balls If I choose a ball from the silver urn and a ball from...
-
4 cos 2x The diagram shows the curve y=- 3-sin 2 for x>0, and the normal to the curve at the point (7,0). Show that the exact area of the shaded region enclosed by the curve, the normal to the curve...
-
A circular concrete shaft liner with Youngs modulus of 3.4 million psi, Poissons ratio of 0.25, unconfined compressive strength 3,500 psi and tensile strength 350 psi is loaded to the verge of...
-
Choose appropriate account names and demonstrate the dual effect that occurs when the following business transactions take place. For example, in (a) we would increase Cash $12 000 and increase...
-
Chloe Enterprises operates a single-product entity. Data relating to the product for 2012 were as follows. Required: a. Calculate the break-even units for 2012. b. Calculate the margin of safety in...
-
The cash flows below were extracted from the accounts of Miss Mary Mac, a music shop owner. $ Repayment of Loan .........................50,000 Sale of property ..............................50,000...
-
Suppose you operate a bank in a country where the central bank is expected to embark on a series of interest rate increases. Based on gap analysis, would this scenario be more likely to hurt or help...
-
Cyber risk has been recognized as a growing source of operational risk for financial institutions. Why might managing this risk at an individual firm level not be adequate?
-
Bank assets equal bank liabilities plus bank capital. a. Bank assets are the uses for bank funds. i. They include reserves, securities, and loans. ii. Over the years, commercial and industrial loans...
Study smarter with the SolutionInn App