Pajama Land has just celebrated their first anniversary as a charity and need to prepare their...

 

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Pajama Land has just celebrated their first anniversary as a charity and need to prepare their financial statements for the first time. They supply pajamas to children who have to spend more than a week in a hospital and sell pajamas to the general public to help fund their project. Since the owners are not experienced with finance, they are unsure of how to complete these financial statements. They also are not sure if they should include their intangible assets on the balance sheet. They have decided to hire a professional to do this and have given them the following information in Table 1. Accumulated depreciation Plant, property, equipment Stock Cost of sales Short term loans Expenses Long term loans Debtors Trade creditors Cash Revenue Retained surplus Interest Surplus for period Overdrafts 30 600 55 4,000 15 3,000 250 15 20 20 12,000 365 1,000 3,700 10 a) Define the term intangible asset. b) Define the term debtors c) Construct a fully labeled profit and loss account for PL for 2022 d) Construct a fully labeled balance sheet for PL as at 2022 [2] [2] (4) [5] Pajama Land has just celebrated their first anniversary as a charity and need to prepare their financial statements for the first time. They supply pajamas to children who have to spend more than a week in a hospital and sell pajamas to the general public to help fund their project. Since the owners are not experienced with finance, they are unsure of how to complete these financial statements. They also are not sure if they should include their intangible assets on the balance sheet. They have decided to hire a professional to do this and have given them the following information in Table 1. Accumulated depreciation Plant, property, equipment Stock Cost of sales Short term loans Expenses Long term loans Debtors Trade creditors Cash Revenue Retained surplus Interest Surplus for period Overdrafts 30 600 55 4,000 15 3,000 250 15 20 20 12,000 365 1,000 3,700 10 a) Define the term intangible asset. b) Define the term debtors c) Construct a fully labeled profit and loss account for PL for 2022 d) Construct a fully labeled balance sheet for PL as at 2022 [2] [2] (4) [5]

Answer rating: 100% (QA)

a An intangible asset is a nonphysical asset that has ... View the full answer