Mitchell plc is a manufacturing company. The following balances have been extracted from its books and...

 

  

Transcribed Image Text:

Mitchell plc is a manufacturing company. The following balances have been extracted from its books and records as at 30 June 2020: Share capital Share premium Retained earnings Delivery vans at cost Delivery vans accumulated depreciation Property at cost Property accumulated depreciation Purchases Administration expenses Factory wages Warehouse wages Office wages Bad debts written off Sales Inventory at 1 July 2019 Cash at bank Trade receivables Provision for doubtful debts at 1 July 2019 Trade payables 10% debentures Debenture interest paid Dividend plaid 3 61,875 372,360 536,010 118,878 83,007 60,970 27,820 1,792 61,776 69,417 76,437 5,625 1,600 1,477,567 £ 225,000 22,500 66,301 21,465 33,750 956,776 3,375 45,900 112,500 1,477,567 I The following information has not yet been taken account of: a) The company has the following depreciation policy: Property Delivery vans 10% straight line 20% reducing balance Depreciation on the property should be allocated as follows: Cost of sales Administration Depreciation on delivery vans Distribution cost 50% 50% 100% You should round numbers to the nearest pound. b) The doubtful debt provision is required to be 10% of the trade receivables. c) The closing inventory is determined to be £380,000. d) Distribution costs include £7,500 a prepayment and a total of £3,300 accrued expenses. e) Accrued administration expenses total £4,520. f) Corporation tax for the year is estimated to be £39,700. Required: a) Prepare a statement of profit or loss for Mitchell ple for the year ended 30 June 2020. b) Prepare a statement of financial position for Mitchell ple as at 30 June 2020. Mitchell plc is a manufacturing company. The following balances have been extracted from its books and records as at 30 June 2020: Share capital Share premium Retained earnings Delivery vans at cost Delivery vans accumulated depreciation Property at cost Property accumulated depreciation Purchases Administration expenses Factory wages Warehouse wages Office wages Bad debts written off Sales Inventory at 1 July 2019 Cash at bank Trade receivables Provision for doubtful debts at 1 July 2019 Trade payables 10% debentures Debenture interest paid Dividend plaid 3 61,875 372,360 536,010 118,878 83,007 60,970 27,820 1,792 61,776 69,417 76,437 5,625 1,600 1,477,567 £ 225,000 22,500 66,301 21,465 33,750 956,776 3,375 45,900 112,500 1,477,567 I The following information has not yet been taken account of: a) The company has the following depreciation policy: Property Delivery vans 10% straight line 20% reducing balance Depreciation on the property should be allocated as follows: Cost of sales Administration Depreciation on delivery vans Distribution cost 50% 50% 100% You should round numbers to the nearest pound. b) The doubtful debt provision is required to be 10% of the trade receivables. c) The closing inventory is determined to be £380,000. d) Distribution costs include £7,500 a prepayment and a total of £3,300 accrued expenses. e) Accrued administration expenses total £4,520. f) Corporation tax for the year is estimated to be £39,700. Required: a) Prepare a statement of profit or loss for Mitchell ple for the year ended 30 June 2020. b) Prepare a statement of financial position for Mitchell ple as at 30 June 2020.

Answer rating: 100% (QA)

A Statement of Profit or Loss for Mitchell plc for the Year Ended 30 June 2020 Revenue Sales 956776 ... View the full answer