The information given for this is: You are given the following information: 1. Inventory on 31 December
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The information given for this is: You are given the following information: 1. Inventory on 31 December 2022 has a selling price of $1,200,000. The company marks up goods at 60%. 2. The land is to be revalued to $3.8m. 3. The charge for insurance includes a premium of $24,000 for the year ended 31 August 2023. Heat and light for the 3 months to 28 February 2015, paid in March 2023 was $90,000. 4. An item of fixtures and fittings, the cost of which had been $230,000 and whose net book value was $161,000, had been sold in the year for $180,000. No accounting entries relating to the disposal have been made in the company's books of account other than in relation to the disposal proceeds. 5. Depreciation on non-current assets is to be charged as follows: Freehold land: no depreciation is charged Buildings: 2% per annum on a straight-line basis Fixtures and fittings: 20% per annum on a reducing balance basis. A full year's depreciation is charged in the year of acquisition while no depreciation is charged in the year of disposal. 6. A debt of $145,000 is to be written off while the bad debt provision is to be 4% of remaining receivables. 7. A final dividend of 3c per ordinary share is to be proposed by the directors. 8. The dividend on the cumulative preference shares, due to be paid on 1 January 2023 is to be provided. 9. Corporation Tax of $287,000 on the current year's profits is to be provided together with any unpaid interest on the loan. 10. A 1 for 2 bonus issue of shares was made on the 28 December 2022 but this has not yet been recorded in the accounting records. Required: an income statement for the year ended 31 December 2022, a statement of financial position at that date, and a statement of movements in equity note for 2022
Related Book For
Fundamental Accounting
ISBN: 9781485112112
7th Edition
Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit
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