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* Question 2 Formatone plc produced the following trial balance as at 30 June 20X6: £000 £000 Land at cost 2,160.0 Buildings at cost Plant and Equipment at cost Intangible assets Accum. depreciation – 30.6.20X5 Buildings Plant and equipment Interim dividend paid Receivables and payables 1,080.0 1,728.0 810.0 432.0 504.0 108.0 585.0 532.8 Cash and bank balance 41.4 Inventory as at 30.6.20X6 586.8 Taxation 14.4 Deferred tax 37.8 Distribution cost 529.2 Administrative expenses Retained earnings b/f 946.8 891.0 Sales revenue 9,480.6 Cost of sales 5,909.4 Ordinary shares of 50p each Share premium account 2,160.0 432.0 14,484.6 14,484.6 The following information is available: (i) A revaluation of the Land and Buildings on I July 20X5 resulted in an increase of £3,240,0O00 in the Land and £972,000 in the Buildings. This has not yet been recorded in the books. (ii) Depreciation: Plant and Equipment are depreciated at 10% using the reducing balance method. Intangible assets are to be written down by £540,000. Buildings have an estimated life of 30 years from date of the revaluation. (iii) Taxation The current tax is estimated at £169,200. There had been an overprovision in the previous year. Deferred tax is to be increased by £27,000. (iv) Capital 150,000 shares were issued and recorded on I July 20X5 for 80p each. A further dividend of 5p per share has been declared on 30 June 20X6. Required: Prepare for the year ended 30 June 20X6 the statement of comprehensive income, statement of changes in equity and statement of financial position. ||||

* Question 2 Formatone plc produced the following trial balance as at 30 June 20X6: £000 £000 Land at cost 2,160.0 Buildings at cost Plant and Equipment at cost Intangible assets Accum. depreciation – 30.6.20X5 Buildings Plant and equipment Interim dividend paid Receivables and payables 1,080.0 1,728.0 810.0 432.0 504.0 108.0 585.0 532.8 Cash and bank balance 41.4 Inventory as at 30.6.20X6 586.8 Taxation 14.4 Deferred tax 37.8 Distribution cost 529.2 Administrative expenses Retained earnings b/f 946.8 891.0 Sales revenue 9,480.6 Cost of sales 5,909.4 Ordinary shares of 50p each Share premium account 2,160.0 432.0 14,484.6 14,484.6 The following information is available: (i) A revaluation of the Land and Buildings on I July 20X5 resulted in an increase of £3,240,0O00 in the Land and £972,000 in the Buildings. This has not yet been recorded in the books. (ii) Depreciation: Plant and Equipment are depreciated at 10% using the reducing balance method. Intangible assets are to be written down by £540,000. Buildings have an estimated life of 30 years from date of the revaluation. (iii) Taxation The current tax is estimated at £169,200. There had been an overprovision in the previous year. Deferred tax is to be increased by £27,000. (iv) Capital 150,000 shares were issued and recorded on I July 20X5 for 80p each. A further dividend of 5p per share has been declared on 30 June 20X6. Required: Prepare for the year ended 30 June 20X6 the statement of comprehensive income, statement of changes in equity and statement of financial position. ||||

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 4MCQ
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* Question 2 Formatone plc produced the following trial balance as at 30 June 20X6: £000 £000 Land at cost 2,160.0 Buildings at cost Plant and Equipment at cost Intangible assets Accum. depreciation – 30.6.20X5 Buildings Plant and equipment Interim dividend paid Receivables and payables 1,080.0 1,728.0 810.0 432.0 504.0 108.0 585.0 532.8 Cash and bank balance 41.4 Inventory as at 30.6.20X6 586.8 Taxation 14.4 Deferred tax 37.8 Distribution cost 529.2 Administrative expenses Retained earnings b/f 946.8 891.0 Sales revenue 9,480.6 Cost of sales 5,909.4 Ordinary shares of 50p each Share premium account 2,160.0 432.0 14,484.6 14,484.6 The following information is available: (i) A revaluation of the Land and Buildings on I July 20X5 resulted in an increase of £3,240,0O00 in the Land and £972,000 in the Buildings. This has not yet been recorded in the books. (ii) Depreciation: Plant and Equipment are depreciated at 10% using the reducing balance method. Intangible assets are to be written down by £540,000. Buildings have an estimated life of 30 years from date of the revaluation. (iii) Taxation The current tax is estimated at £169,200. There had been an overprovision in the previous year. Deferred tax is to be increased by £27,000. (iv) Capital 150,000 shares were issued and recorded on I July 20X5 for 80p each. A further dividend of 5p per share has been declared on 30 June 20X6. Required: Prepare for the year ended 30 June 20X6 the statement of comprehensive income, statement of changes in equity and statement of financial position. ||||
Transcribed Image Text:* Question 2 Formatone plc produced the following trial balance as at 30 June 20X6: £000 £000 Land at cost 2,160.0 Buildings at cost Plant and Equipment at cost Intangible assets Accum. depreciation – 30.6.20X5 Buildings Plant and equipment Interim dividend paid Receivables and payables 1,080.0 1,728.0 810.0 432.0 504.0 108.0 585.0 532.8 Cash and bank balance 41.4 Inventory as at 30.6.20X6 586.8 Taxation 14.4 Deferred tax 37.8 Distribution cost 529.2 Administrative expenses Retained earnings b/f 946.8 891.0 Sales revenue 9,480.6 Cost of sales 5,909.4 Ordinary shares of 50p each Share premium account 2,160.0 432.0 14,484.6 14,484.6 The following information is available: (i) A revaluation of the Land and Buildings on I July 20X5 resulted in an increase of £3,240,0O00 in the Land and £972,000 in the Buildings. This has not yet been recorded in the books. (ii) Depreciation: Plant and Equipment are depreciated at 10% using the reducing balance method. Intangible assets are to be written down by £540,000. Buildings have an estimated life of 30 years from date of the revaluation. (iii) Taxation The current tax is estimated at £169,200. There had been an overprovision in the previous year. Deferred tax is to be increased by £27,000. (iv) Capital 150,000 shares were issued and recorded on I July 20X5 for 80p each. A further dividend of 5p per share has been declared on 30 June 20X6. Required: Prepare for the year ended 30 June 20X6 the statement of comprehensive income, statement of changes in equity and statement of financial position. ||||
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