The following balances existed in the accounting records of Koppa Ltd. at 31 December 20X2: _____________________________________________________________'000 Development
Question:
The following balances existed in the accounting records of Koppa Ltd. at 31 December 20X2:
_____________________________________________________________£'000
Development costs capitalized, 1 January 20X2....................................180
Freehold lord as revalued 31 December 20X2....................................2,200
Buildings cost...........................................................................900
- aggregate depreciation at 1 January 20X2.........................................100
Office equipment - cost...............................................................260
- aggregate depreciation at 1 January 20X2..........................................60
Motor vehicles - cost..................................................................200
- aggregate depredation at 1 January 20X2..........................................90
Trade receivables.....................................................................1,360
Cash of bank..............................................................................90
Trade payables...........................................................................820
12% debentures (issued 20W5 and redeemable 20X2)..........................1,000
equity shores of 50p cash.............................................................1,000
Share premium account.................................................................500
Revaluation reserve.....................................................................200
Retained earnings I January 20X2...................................................1272
Soles revenue...........................................................................8650
Purchases...............................................................................5010
Research and development expenditure for the year..............................162
Inventories 1 January 20X2...........................................................990
Distribution costs.......................................................................460
Administrative expenses.............................................................1560
Debenture interest......................................................................120
Interim dividend paid..................................................................200
In preparing the company's statement of comprehensive income and statement of financial position at 31 December 20X2 the following further information is relevant:
1. Inventory at 31 December 20X2 was £880,000.
2. Depreciation is to be provided for as follows:
Land Nil
Buildings 2 per cent per annum on cost
Office equipment 20 per cent per annum, reducing balance basis
Motor vehicles 25 per cent per annum on cost
Depreciation on buildings and office equipment is all charged to administrative expenses. Depreciation on motor vehicles is to be split equally between distribution costs and administrative expenses.
3. The £180,000 total for development costs as at 1 January 20X2 relates to two projects:
4. The research and development expenditure for the year is made up of:
5. The freehold land had originally cost £2,000,000 and was revalued on 31
December 20X2.
6. Prepayments and accruals at 31 December 20X2 were:
7. The share premium account balance arose as a result of the issue during 20X2 of 1,000,000 50p equity shares at £1 each. All shares qualify for the proposed final dividend to be provided for (see note below).
8. A final dividend of 20p per share is proposed.
Required
Prepare the company's statement of comprehensive income, a statement of changes in equity for the year ended 31 December 20X2, and statement of financial position as at that date, in a form suitable for publication as far as the information provided permits. No notes are required. Ignore taxation.
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Step by Step Answer:
Workings 1 Cost of sales 000 Inventories at 1 Jan 20X2 990 Purchases 5010 Research expenditure 103 Amortisation of development expenditure 20 6123 Inv...View the full answer
Introduction To Financial Accounting
ISBN: 978-0077138448
7th edition
Authors: Anne Marie Ward, Andrew Thomas
