The following trial balance has been extracted from the books of Groove Tech Ltd as at...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following trial balance has been extracted from the books of Groove Tech Ltd as at March 31, 2020. Administrative expenses Called up share capital (Ordinary shares of P1.00 fully paid) Accounts receivable Corporation tax (overprovision in 2019) Deferred Taxation (at April 1, 2019) Distribution Costs Gain on sale of non-current assets Non-current asset investments Investment income Plant and Machinery: at cost Accumulated depreciation (March 31, 2020) Retained Profits Purchases Inventory (April 1, 2019) Trade accounts payable Revenue Cash at Bank Depreciation Hire of plant and machinery Auditor's remuneration Directors P'000 210 P 27 20 470 420 560 750 960 140 Additional Information: 1. Inventory at March 31, 2020 was valued at P150 000. 2. The following items are already in the balances listed in the above trial balance: Distribution costs Administrative costs 40 3 550 P P'000 600 Required a) Statement of comprehensive income for the year ended March 31, 2020. b) Statement of changes in Equity for the period ended March 31, 2020. c) Statement of Financial Position as at March 31, 2020. 25 180 60 72 220 182 261 1950 3550 5 15 30 45 3. The corporation tax charge based on the profits for the year is estimated to be P52 000. 4. A transfer of P16 000 is to be made to the credit of the deferred taxation account. 5. The gain made on the disposal of a non-current asset is related to a factory in neighboring country following the closure of the company's entire operation there. 6. The company's authorised share capital consists of 1 000 000 ordinary shares of P1.00 each. 7. A final ordinary dividend payment of 50t per share is proposed. The following trial balance has been extracted from the books of Groove Tech Ltd as at March 31, 2020. Administrative expenses Called up share capital (Ordinary shares of P1.00 fully paid) Accounts receivable Corporation tax (overprovision in 2019) Deferred Taxation (at April 1, 2019) Distribution Costs Gain on sale of non-current assets Non-current asset investments Investment income Plant and Machinery: at cost Accumulated depreciation (March 31, 2020) Retained Profits Purchases Inventory (April 1, 2019) Trade accounts payable Revenue Cash at Bank Depreciation Hire of plant and machinery Auditor's remuneration Directors P'000 210 P 27 20 470 420 560 750 960 140 Additional Information: 1. Inventory at March 31, 2020 was valued at P150 000. 2. The following items are already in the balances listed in the above trial balance: Distribution costs Administrative costs 40 3 550 P P'000 600 Required a) Statement of comprehensive income for the year ended March 31, 2020. b) Statement of changes in Equity for the period ended March 31, 2020. c) Statement of Financial Position as at March 31, 2020. 25 180 60 72 220 182 261 1950 3550 5 15 30 45 3. The corporation tax charge based on the profits for the year is estimated to be P52 000. 4. A transfer of P16 000 is to be made to the credit of the deferred taxation account. 5. The gain made on the disposal of a non-current asset is related to a factory in neighboring country following the closure of the company's entire operation there. 6. The company's authorised share capital consists of 1 000 000 ordinary shares of P1.00 each. 7. A final ordinary dividend payment of 50t per share is proposed.
Expert Answer:
Answer rating: 100% (QA)
a b Revenue Less Cost of goods sold Gross income Less Operating expense Distribution expense Depreci... View the full answer
Related Book For
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
Posted Date:
Students also viewed these accounting questions
-
Today is the fiscal year end for the Benson Boat Company. The regular year-end interest payment on its 9% bonds payable was made earlier today. All necessary entries were recorded. Bonds Payable now...
-
According to the Keynesian model of consumption, which will cause the consumption function to shift downwards? an increase in stock market wealth. O a personal tax cut. O a decline in consumer...
-
Suppose that the correct model for estimating a given relationship is: E[Y|D, X] = Bo + B1 Di + BX; + VD However, instead of estimating the above regression, we estimate the model below: E[Y|D] = bo...
-
Suppose that Serendipity Bank has excess reserves of $8000 and checkable deposits of $150,000. If the reserve ratio is 20 percent, what is the size of the banks actual reserves?
-
Visit the website for the Tax Foundation (www.taxfoundation.org). Select the link About Us to read the organizations mission statement. Select the link Tax Topics to research the following: a. What...
-
If the electric field in an electromagnetic wave \(5 \mathrm{~cm}\) from a radio-emitting antenna has a maximum magnitude of \(3.0 \times 10^{5} \mathrm{~V} / \mathrm{m}\), what is the maximum...
-
For each of the following, indicate whether the item is an adjustment to the bank balance or the book balance: 1. Bank service charge 2. Deposit in transit 3. Bank collection of amount due from...
-
The Coca-Cola Companys manufacturing operations are ideal for process costing because it and its bottlers produce long runs of identical beverages in a continuous flow production process. Go to the...
-
Rory Company has an old machine with a book value of $77,000 and a remaining five-year useful life. Rory is considering purchasing a new machine at a price of $105,000. Rory can sell its old machine...
-
Imagine that Howard has asked you to write some queries to help him make better use of his data. For each information request below, write a single query that provides the answer set. When a task...
-
2. (a) Emilia is the Financial Analyst at Megah Jaya Company. She is considering two investment alternatives. The following information is given: Alternative Par value Coupon interest Maturity Market...
-
A producer of extruded plastic products finds that his mean daily inventory is 1,250 pieces. A new marketing policy has been put into effect and it is desired to test the null hypothesis that the...
-
Several square inches of gold leaf are required in the manufacture of a high-end component. Suppose that, the population of the amount of gold leaf has \(\sigma=8.4\) square inches. We want to test...
-
It is desired to test the null hypothesis \(\mu=30\) minutes against the alternative hypothesis \(\mu <30\) minutes on the basis of the time taken by a newly developed oven for \(n=50\) cakes baked....
-
In 64 randomly selected hours of production, the mean and the standard deviation of the number of acceptable pieces produced by a automatic stamping machine are \(\bar{x}=1,038\) and \(s=146\). At...
-
Refer to Exercise 2.34, page 46, concerning the number of board failures for \(n=32\) integrated circuits. A computer calculation gives \(\bar{x}=7.6563\) and \(s=\) 5.2216. At the 0.01 level of...
-
Around the globe (Global Mart) is a dominant force in the international e-commerce landscape, renowned for its extensive product range and vast customer base. As a market leader, the company has...
-
How is use of the word consistent helpful in fraud reports?
-
How do assets create value for our business? Investing decisions affect a companys profits, risk, and value. Investment decisions that result in fixed costs increase risk and the ability of a company...
-
Larrisa Enterprises, Inc., owns and operates a chain of mini-mart stores in a popular summer resort area. Business is highly seasonal with about 80% of annual sales occurring during June, July, and...
-
A friend says, The accounting terms depletion and depreciation describe basically the same thing. Do you agree or disagree? Why?
-
A pipe branches symmetrically into two legs of length \(L\), and the whole system rotates with angular speed \(\omega\) around its axis of symmetry. Each branch is inclined at angle \(\alpha\) to the...
-
For the rotating sprinkler of Example 4.13, what value of \(\alpha\) will produce the maximum rotational speed? What angle will provide the maximum area of coverage by the spray? Draw a velocity...
-
Compressed air is stored in a pressure bottle with a volume of \(100 \mathrm{~L}\), at \(500 \mathrm{kPa}\) absolute and \(20^{\circ} \mathrm{C}\). At a certain instant, a valve is opened and mass...
Study smarter with the SolutionInn App