Question 1 The following extract of the trial balance pertains to Dockyard Plc for the year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 1 The following extract of the trial balance pertains to Dockyard Plc for the year ended 31 March 2020 Research & Development (Note 1) Patents at cost Accumulated amortisation (Note 2) Plant and Machinery (Note 3) Accumulated depreciation Note 1 £ 115,000 15,000 350,000 £ 4,500 112,500 Research and development includes £28,000 incurred up to 30 June 2019 when a project review was done and Dockyard Plc assessed that the development of new the product was economically viable. The remaining costs were incurred between 1 July and 1 December 2019 when the new product was launched and include £8,000 on staff training, £12,000 on product testing and £10,000 on promotional advertising. The new product has an estimated useful life of four years. All expenses relating to research and development should be presented in other operating costs. Note 2 The accumulated amortisation in the trial balance pertains full to Patents. All the patents have an estimated useful life of five years and amortisation is presented in other operating costs. On 1 October 2019 Dockyard Plc sold one of its patents, which had originally been acquired on 1 April 2017 at a cost of £2,400. The profit on disposal was correctly calculated £6,500 but the only accounting entries made were to debit cash at bank with the sale proceeds and credit a suspense account. Note 3 On 1 April 2019 Dockyard Plc received a government grant of £10,000 to help finance the acquisition of a new machinery which was purchased on the same date. The machine has been depreciated using reducing balance basis at a rate of 20% pa. Dockyard has credited £10,000 to revenue. Having discussed this further the board of directors of Dockyard have decided to account for the grants under IAS 20 using the deferred income basis. Show how the above will be reflected in the financial statements of Dockyard for the year ended 31 March 2020 Question 1 The following extract of the trial balance pertains to Dockyard Plc for the year ended 31 March 2020 Research & Development (Note 1) Patents at cost Accumulated amortisation (Note 2) Plant and Machinery (Note 3) Accumulated depreciation Note 1 £ 115,000 15,000 350,000 £ 4,500 112,500 Research and development includes £28,000 incurred up to 30 June 2019 when a project review was done and Dockyard Plc assessed that the development of new the product was economically viable. The remaining costs were incurred between 1 July and 1 December 2019 when the new product was launched and include £8,000 on staff training, £12,000 on product testing and £10,000 on promotional advertising. The new product has an estimated useful life of four years. All expenses relating to research and development should be presented in other operating costs. Note 2 The accumulated amortisation in the trial balance pertains full to Patents. All the patents have an estimated useful life of five years and amortisation is presented in other operating costs. On 1 October 2019 Dockyard Plc sold one of its patents, which had originally been acquired on 1 April 2017 at a cost of £2,400. The profit on disposal was correctly calculated £6,500 but the only accounting entries made were to debit cash at bank with the sale proceeds and credit a suspense account. Note 3 On 1 April 2019 Dockyard Plc received a government grant of £10,000 to help finance the acquisition of a new machinery which was purchased on the same date. The machine has been depreciated using reducing balance basis at a rate of 20% pa. Dockyard has credited £10,000 to revenue. Having discussed this further the board of directors of Dockyard have decided to account for the grants under IAS 20 using the deferred income basis. Show how the above will be reflected in the financial statements of Dockyard for the year ended 31 March 2020 Question 1 The following extract of the trial balance pertains to Dockyard Plc for the year ended 31 March 2020 Research & Development (Note 1) Patents at cost Accumulated amortisation (Note 2) Plant and Machinery (Note 3) Accumulated depreciation Note 1 £ 115,000 15,000 350,000 £ 4,500 112,500 Research and development includes £28,000 incurred up to 30 June 2019 when a project review was done and Dockyard Plc assessed that the development of new the product was economically viable. The remaining costs were incurred between 1 July and 1 December 2019 when the new product was launched and include £8,000 on staff training, £12,000 on product testing and £10,000 on promotional advertising. The new product has an estimated useful life of four years. All expenses relating to research and development should be presented in other operating costs. Note 2 The accumulated amortisation in the trial balance pertains full to Patents. All the patents have an estimated useful life of five years and amortisation is presented in other operating costs. On 1 October 2019 Dockyard Plc sold one of its patents, which had originally been acquired on 1 April 2017 at a cost of £2,400. The profit on disposal was correctly calculated £6,500 but the only accounting entries made were to debit cash at bank with the sale proceeds and credit a suspense account. Note 3 On 1 April 2019 Dockyard Plc received a government grant of £10,000 to help finance the acquisition of a new machinery which was purchased on the same date. The machine has been depreciated using reducing balance basis at a rate of 20% pa. Dockyard has credited £10,000 to revenue. Having discussed this further the board of directors of Dockyard have decided to account for the grants under IAS 20 using the deferred income basis. Show how the above will be reflected in the financial statements of Dockyard for the year ended 31 March 2020 Question 1 The following extract of the trial balance pertains to Dockyard Plc for the year ended 31 March 2020 Research & Development (Note 1) Patents at cost Accumulated amortisation (Note 2) Plant and Machinery (Note 3) Accumulated depreciation Note 1 £ 115,000 15,000 350,000 £ 4,500 112,500 Research and development includes £28,000 incurred up to 30 June 2019 when a project review was done and Dockyard Plc assessed that the development of new the product was economically viable. The remaining costs were incurred between 1 July and 1 December 2019 when the new product was launched and include £8,000 on staff training, £12,000 on product testing and £10,000 on promotional advertising. The new product has an estimated useful life of four years. All expenses relating to research and development should be presented in other operating costs. Note 2 The accumulated amortisation in the trial balance pertains full to Patents. All the patents have an estimated useful life of five years and amortisation is presented in other operating costs. On 1 October 2019 Dockyard Plc sold one of its patents, which had originally been acquired on 1 April 2017 at a cost of £2,400. The profit on disposal was correctly calculated £6,500 but the only accounting entries made were to debit cash at bank with the sale proceeds and credit a suspense account. Note 3 On 1 April 2019 Dockyard Plc received a government grant of £10,000 to help finance the acquisition of a new machinery which was purchased on the same date. The machine has been depreciated using reducing balance basis at a rate of 20% pa. Dockyard has credited £10,000 to revenue. Having discussed this further the board of directors of Dockyard have decided to account for the grants under IAS 20 using the deferred income basis. Show how the above will be reflected in the financial statements of Dockyard for the year ended 31 March 2020 Question 1 The following extract of the trial balance pertains to Dockyard Plc for the year ended 31 March 2020 Research & Development (Note 1) Patents at cost Accumulated amortisation (Note 2) Plant and Machinery (Note 3) Accumulated depreciation Note 1 £ 115,000 15,000 350,000 £ 4,500 112,500 Research and development includes £28,000 incurred up to 30 June 2019 when a project review was done and Dockyard Plc assessed that the development of new the product was economically viable. The remaining costs were incurred between 1 July and 1 December 2019 when the new product was launched and include £8,000 on staff training, £12,000 on product testing and £10,000 on promotional advertising. The new product has an estimated useful life of four years. All expenses relating to research and development should be presented in other operating costs. Note 2 The accumulated amortisation in the trial balance pertains full to Patents. All the patents have an estimated useful life of five years and amortisation is presented in other operating costs. On 1 October 2019 Dockyard Plc sold one of its patents, which had originally been acquired on 1 April 2017 at a cost of £2,400. The profit on disposal was correctly calculated £6,500 but the only accounting entries made were to debit cash at bank with the sale proceeds and credit a suspense account. Note 3 On 1 April 2019 Dockyard Plc received a government grant of £10,000 to help finance the acquisition of a new machinery which was purchased on the same date. The machine has been depreciated using reducing balance basis at a rate of 20% pa. Dockyard has credited £10,000 to revenue. Having discussed this further the board of directors of Dockyard have decided to account for the grants under IAS 20 using the deferred income basis. Show how the above will be reflected in the financial statements of Dockyard for the year ended 31 March 2020 Question 1 The following extract of the trial balance pertains to Dockyard Plc for the year ended 31 March 2020 Research & Development (Note 1) Patents at cost Accumulated amortisation (Note 2) Plant and Machinery (Note 3) Accumulated depreciation Note 1 £ 115,000 15,000 350,000 £ 4,500 112,500 Research and development includes £28,000 incurred up to 30 June 2019 when a project review was done and Dockyard Plc assessed that the development of new the product was economically viable. The remaining costs were incurred between 1 July and 1 December 2019 when the new product was launched and include £8,000 on staff training, £12,000 on product testing and £10,000 on promotional advertising. The new product has an estimated useful life of four years. All expenses relating to research and development should be presented in other operating costs. Note 2 The accumulated amortisation in the trial balance pertains full to Patents. All the patents have an estimated useful life of five years and amortisation is presented in other operating costs. On 1 October 2019 Dockyard Plc sold one of its patents, which had originally been acquired on 1 April 2017 at a cost of £2,400. The profit on disposal was correctly calculated £6,500 but the only accounting entries made were to debit cash at bank with the sale proceeds and credit a suspense account. Note 3 On 1 April 2019 Dockyard Plc received a government grant of £10,000 to help finance the acquisition of a new machinery which was purchased on the same date. The machine has been depreciated using reducing balance basis at a rate of 20% pa. Dockyard has credited £10,000 to revenue. Having discussed this further the board of directors of Dockyard have decided to account for the grants under IAS 20 using the deferred income basis. Show how the above will be reflected in the financial statements of Dockyard for the year ended 31 March 2020 Question 1 The following extract of the trial balance pertains to Dockyard Plc for the year ended 31 March 2020 Research & Development (Note 1) Patents at cost Accumulated amortisation (Note 2) Plant and Machinery (Note 3) Accumulated depreciation Note 1 £ 115,000 15,000 350,000 £ 4,500 112,500 Research and development includes £28,000 incurred up to 30 June 2019 when a project review was done and Dockyard Plc assessed that the development of new the product was economically viable. The remaining costs were incurred between 1 July and 1 December 2019 when the new product was launched and include £8,000 on staff training, £12,000 on product testing and £10,000 on promotional advertising. The new product has an estimated useful life of four years. All expenses relating to research and development should be presented in other operating costs. Note 2 The accumulated amortisation in the trial balance pertains full to Patents. All the patents have an estimated useful life of five years and amortisation is presented in other operating costs. On 1 October 2019 Dockyard Plc sold one of its patents, which had originally been acquired on 1 April 2017 at a cost of £2,400. The profit on disposal was correctly calculated £6,500 but the only accounting entries made were to debit cash at bank with the sale proceeds and credit a suspense account. Note 3 On 1 April 2019 Dockyard Plc received a government grant of £10,000 to help finance the acquisition of a new machinery which was purchased on the same date. The machine has been depreciated using reducing balance basis at a rate of 20% pa. Dockyard has credited £10,000 to revenue. Having discussed this further the board of directors of Dockyard have decided to account for the grants under IAS 20 using the deferred income basis. Show how the above will be reflected in the financial statements of Dockyard for the year ended 31 March 2020 Question 1 The following extract of the trial balance pertains to Dockyard Plc for the year ended 31 March 2020 Research & Development (Note 1) Patents at cost Accumulated amortisation (Note 2) Plant and Machinery (Note 3) Accumulated depreciation Note 1 £ 115,000 15,000 350,000 £ 4,500 112,500 Research and development includes £28,000 incurred up to 30 June 2019 when a project review was done and Dockyard Plc assessed that the development of new the product was economically viable. The remaining costs were incurred between 1 July and 1 December 2019 when the new product was launched and include £8,000 on staff training, £12,000 on product testing and £10,000 on promotional advertising. The new product has an estimated useful life of four years. All expenses relating to research and development should be presented in other operating costs. Note 2 The accumulated amortisation in the trial balance pertains full to Patents. All the patents have an estimated useful life of five years and amortisation is presented in other operating costs. On 1 October 2019 Dockyard Plc sold one of its patents, which had originally been acquired on 1 April 2017 at a cost of £2,400. The profit on disposal was correctly calculated £6,500 but the only accounting entries made were to debit cash at bank with the sale proceeds and credit a suspense account. Note 3 On 1 April 2019 Dockyard Plc received a government grant of £10,000 to help finance the acquisition of a new machinery which was purchased on the same date. The machine has been depreciated using reducing balance basis at a rate of 20% pa. Dockyard has credited £10,000 to revenue. Having discussed this further the board of directors of Dockyard have decided to account for the grants under IAS 20 using the deferred income basis. Show how the above will be reflected in the financial statements of Dockyard for the year ended 31 March 2020
Expert Answer:
Answer rating: 100% (QA)
The financial statements for the year ended 31 March 2020 will reflect the following Research and de... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
The summarized statements for the year ended 31 December 2007 for Mat, Rug and P entities are as follows: Statements of comprehensive income for the year ended 31 December 2007 The following...
-
The rules for how segments should be presented in the annual report are governed by external financial accounting rules. The information you gathered for the previous requirements would be used by...
-
An intangible asset with an estimated useful life of 30 years was acquired on January 1, 2002, for $540,000. On January 1, 2012, a review was made of intangible assets and their expected service...
-
Do the following problems mentally using the distributive property. a. 5 99 b. 4 88 c. 8 52
-
Turner Corporation reported the following balances at January 1, 20X9: On January 1, 20X9, Gross Corporation purchased 100 percent of Turner's stock. All tangible assets had a remaining economic life...
-
Dale Company experiences heavy sales in the summer and early fall, after which time it has excess cash to invest until the next spring. On November 1, 2011, the company invested $194,000 in U.S....
-
The bicycle is a simple machine. True or False
-
Thomas Bell, a minor, went to work in the Pittsburgh beauty parlor of Sam Pankas and agreed that when he left the employment, he would not work in or run a beauty parlor business within a 10-mile...
-
Would you be able to recreate the planning and strategic management process that Mr. Nadella used? What would Microsoft's planning flowchart look like based on the goal he proposed? Did Mr. Nadella...
-
This problem asks you to analyze the capital structure of HCA, Inc., the largest private operator of health care facilities in the world. In 2006, a syndicate of private equity firms acquired the...
-
What distinguishes listening from hearing? How do your listening behaviors change in the following situations: A) at a concert, B) in class, C) at the dinner table with your parents, D) in a doctor's...
-
If f(x) = e* x, find '(1).
-
Marketers of such consumer services such as health care, vacation homes, and life insurance are capitalizing on the general trend of an ageing population, and are developing and implementing...
-
Based on your review, you determined that specific polices related to incident reporting and physical safeguards need revising. Develop two separate policies, using the template below, to address the...
-
FASB Codification/AAA Student Log in Access http://aaahq.org/FASB-GASB Student Access Username - AAA53060 Password - 7RHs3pS 1 - The FASB Accounting Standards Codification represents the single...
-
How can functionalism be reconciled with emergent social issues, such as systemic inequalities and social justice movements, which challenge the assumption of inherent social order and stability?
-
Debbie is self employed. She owns a bicycle repair business. She earns $120,000 from net self-employment income. The Social Security Income Limit for the year (for Social Security taxes) is $80,000....
-
The following selected accounts and normal balances existed at year-end. Notice that expenses exceed revenue in this period. Make the four journal entries required to close the books: Accounts...
-
The statements of financial position of Radar plc at 30 September were as follows: The following information is available: (i) An impairment review of the investments disclosed that there had been an...
-
You are informed that the non-current assets totaled 350,000, current liabilities 156,000, the opening retained earnings totaled 103,000, the administration expenses totaled 92,680 and that the...
-
River plc acquired 90% of the common shares and 10% of the 5% bonds in Pool Ltd on 31 March 20X1. All income and expenses are deemed to accrue evenly through the year. On 31 January 20X1 River sold...
-
Using a financial calculator, solve for the unknowns in each of the following situations. a. On June 1, 2024, Holly Golightly purchases lakefront property from her neighbor, George Peppard, and...
-
Sally W. Emanual, a teacher, had the following dividends and interest during 2022: Additional information pertaining to Sally Emanual includes The taxable portion of the pension is \($7,000.\) Sally...
-
Ed owns Oak Knoll Apartments. During the year, Fred, a tenant, moved to another state. Fred paid Ed \($1,000\) to cancel the two-year lease he had signed. Ed subsequently began renting the unit to...
Study smarter with the SolutionInn App