The following is the trial balance of Cornwall Distributers Limited as at the 31 December 2019...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following is the trial balance of Cornwall Distributers Limited as at the 31 December 2019 Trial Balance as at 31 December 2019 300 000 $1 Ordinary shares 200 000 8% $1 Preference shares Share Premim General Reserve Retained earnings 10% Debentares Debenture interest Land and Buildings at cost Machinery at cost Equipment Provision for Depreciation: Machinery at cost Equipment Provision for bad debts Cash and Bank Rent and rates Directors salaries Advertising expense Wages and Salaries Overheads Bad debts Trade receivables and Payables Purchases and Sales Stock 1.1.2019 Discounts DR $ 7,000 8,000 881,000 300,000 200,000 30,000 12,000 260,000 34,000 84,000 240,000 21,000 165,000 480,000 120,000 12,000 2,854,000 CR $ 300,000 200,000 50,000 20,000 100,000 100,000 80,000 24,000 210,000 1,750,000 20,000 2,854,000 Notes at 31 December 2019: 1) Provide for bad debts at 8% of receivables 2) Wages prepaid $16 000 3) Overheads, wages & salaries and rent & rates are to be shared 40% Selling and Distribution and 60% administration. 4) The directors proposed the following: a) To transfer $18000 to general reserve b) To pay the preference dividend and to declare an ordinary dividend of 10% 5) Corporation tax for the year is estimated at $85 000 6) Cost of stock at 31 December 2018, $70 000 (Net realizable value $60 000) 7) Depreciate Machinery at 10% of cost and Equipment at 5% on the reducing balance. (shared 30% to selling and distribution and 70% to administration) REQUIRED: (a) Prepare the Statement of Comprehensive Income for the year ended 31 December 2019 (b) Prepare the statement of Changes in Equity as at 31 December 2019 (21 marks) (4 marks) (c) The Statement of Financial Position as at 31 December 2019 (12 marks) [Total 37 marks] The following is the trial balance of Cornwall Distributers Limited as at the 31 December 2019 Trial Balance as at 31 December 2019 300 000 $1 Ordinary shares 200 000 8% $1 Preference shares Share Premim General Reserve Retained earnings 10% Debentares Debenture interest Land and Buildings at cost Machinery at cost Equipment Provision for Depreciation: Machinery at cost Equipment Provision for bad debts Cash and Bank Rent and rates Directors salaries Advertising expense Wages and Salaries Overheads Bad debts Trade receivables and Payables Purchases and Sales Stock 1.1.2019 Discounts DR $ 7,000 8,000 881,000 300,000 200,000 30,000 12,000 260,000 34,000 84,000 240,000 21,000 165,000 480,000 120,000 12,000 2,854,000 CR $ 300,000 200,000 50,000 20,000 100,000 100,000 80,000 24,000 210,000 1,750,000 20,000 2,854,000 Notes at 31 December 2019: 1) Provide for bad debts at 8% of receivables 2) Wages prepaid $16 000 3) Overheads, wages & salaries and rent & rates are to be shared 40% Selling and Distribution and 60% administration. 4) The directors proposed the following: a) To transfer $18000 to general reserve b) To pay the preference dividend and to declare an ordinary dividend of 10% 5) Corporation tax for the year is estimated at $85 000 6) Cost of stock at 31 December 2018, $70 000 (Net realizable value $60 000) 7) Depreciate Machinery at 10% of cost and Equipment at 5% on the reducing balance. (shared 30% to selling and distribution and 70% to administration) REQUIRED: (a) Prepare the Statement of Comprehensive Income for the year ended 31 December 2019 (b) Prepare the statement of Changes in Equity as at 31 December 2019 (21 marks) (4 marks) (c) The Statement of Financial Position as at 31 December 2019 (12 marks) [Total 37 marks]
Expert Answer:
Answer rating: 100% (QA)
Answer a Statement of Comprehensive Income for the year ended 31 December 2019 Revenue Sales 1750000 ... View the full answer
Related Book For
International Financial Reporting and Analysis
ISBN: 978-1408075012
5th edition
Authors: David Alexander, Anne Britton, Ann Jorissen
Posted Date:
Students also viewed these finance questions
-
World Religions Class Question: The adhan is recited bythe muezzin fromthe minaret ofthe mosque five times daily.The azan contains the words ofthe shahada . Explain what each of these termsmeans. A...
-
Ms. Berry is employed as an Accounts Manager in the Jamaican company ADM Limited. In 2022, she earned a monthly salary of $820,000.00. She also sits on the board of directors of FHC Company Limited...
-
Duxbury started in business on 1 January 2017. The following is his trial balance as at 31 December 2017: Additional information: 1 Inventory at 31 December 2017 was valued at 10 000. 2 At 31...
-
Consider two mutually exclusive investment projects: A 1 and A2. Each project has the same service life, and the present worth of each component value (B, I, and C) is computed at 10% as follows:...
-
Solve Prob. 11?56 using the principle of potential energy. Investigate the stability of the rod when it is in the equilibrium position. 2 ft k = 50 lb/ft www 1 ft
-
A mutual fund has provided investment yield rates for five consecutive years as follows: Determine \(r_{1}\) and \(r_{2}\), the lag 1 and lag 2 autocorrelation coefficients. Determine \(r_{1}\) and...
-
A 25-mm-diameter hot surface at \(T_{s}=85^{\circ} \mathrm{C}\) is cooled by an air jet exiting a 5-mm-diameter round nozzle with a velocity of \(35 \mathrm{~m} / \mathrm{s}\) and temperature of...
-
Bob, an engineer, decided to start a college fund for his son. Bob will deposit a series of equal, semiannual cash flows with each deposit equal to $1500. Bob made the first deposit on July 1, 1998...
-
Now we have a rod-shaped space station of length 1336 m and mass 6.24 x 10^6 kg, which can change its length (kind of like an old-fashioned telescope), without changing its overall mass. Suppose that...
-
The finance director of RM plc is considering several investment projects and has collected the following information about them. Projects D and E are mutually exclusive. The capital available for...
-
Use the calculator provided to solve the following problems: Consider an E distritution with 16 numerator dearees of freedom and 42 denominator degrees of freedom. Compute P(0.70
-
In an "Analysis of Alleged Auditor Deficiencies in SEC Fraud Investigations: 1998-2010" why were auditors unable to detect fraud?
-
What do tax evasion, tax avoidance and Tax planning have in common?
-
How are revenues typically recorded with debits and credits?
-
What is the gross profit for October for Jax Company?
-
You are putting together a visualization for your company's financial performance over the year. Why is a waterfall chart ideal for this task?
-
Tubbs Inc. has 25,000 shares of $1 par-value common stock outstanding. On March 1, the company declares a $1.25 per share dividend to stockholders on record on March 15. On March 25, Tubbs Inc. paid...
-
What is the ideal number of children to have? This question was asked on the Sullivan Statistics Survey I. Draw a dot plot of the variable Children from theSullivanStatsSurveyI data set at...
-
Discuss the need for entities to provide additional information to users.
-
D has owned 80% of the equity shares of E since 1 January 1996. E has owned 60% of the equity shares of F since 1 January 1994. The accumulated profits of Fat the latest statement of financial...
-
EJ publishes trade magazines and sells them to retailers. EJ has just concluded negotiations with a large supermarket chain for the supply of a large quantity of several of its trade magazines on a...
-
(a) Consider the flash separation process shown in Figure 7.1. If using ASPEN PLUS, solve all three cases using the MIXER, FLASH2, FSPLIT, and PUMP modules and the RK-SOAVE option set for...
-
As discussed in Example 6.7, toluene \(\left(\mathrm{C}_{7} \mathrm{H}_{8} ight)\) is to be converted thermally to benzene \(\left(\mathrm{C}_{6} \mathrm{H}_{6} ight)\) in a hydrodealkylation...
-
As discussed in Example 6.7, the following stream at \(100^{\circ} \mathrm{F}\) and 484 psia is to be separated by two distillation columns into the Products \(1-3\) in the following table. Two...
Study smarter with the SolutionInn App