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QUESTION TWO The trial balance of SHAKERS LTD as at 31st December 2009 is as follows: GH¢ GH¢ Revenue and Purchases 20,000 50,000 8,000 Inventory Distribution costs 8,000 Administration expenses 15,550 Receivables and Payables 10,000 20,000 Reorganization expenses 2,400 Cash and bank 8,100 Stated Capital (@GH¢1.00/share) 10% Irredeemable Preference Shares (@GH¢1.00/share) 11,000 9,000 10% Debentures 8,000 Non-current Assets at Net Book Value 35,000 Retained Earnings (@ 1 January 2009) Debenture interest paid Preference dividend paid Interim ordinary dividend paid 3,000 400 450 1,600 Тах 500 Suspense 8,000 109,500 109,500 The following is to be taken into account 1. A building whose Net Book Value is currently GH¢5,000 was revalued to GH¢11,000. 2. A final ordinary dividend of GH¢0.10 per share is to be provided for, in addition to the interim dividend paid. 3. The balance on the corporation tax account represents an overprovision of tax for the previous year. Tax for the current year is estimated at GH¢3,000. 4. Closing inventory is GH¢12,000. 5. The balance on the suspense account represents the proceeds from the issue of 4,000 ordinary shares @ GH¢2.00/share raised on the last day of the year. Required: Prepare for Shakers Ltd a: a) Statement of comprehensive income for the year ended Dec 31 2009, b) Statement of changes in equity for the year ended Dec 31 2009, c) Statement of financial position as at Dec 31 2009. NB: Notes to the accounts are not required.

QUESTION TWO The trial balance of SHAKERS LTD as at 31st December 2009 is as follows: GH¢ GH¢ Revenue and Purchases 20,000 50,000 8,000 Inventory Distribution costs 8,000 Administration expenses 15,550 Receivables and Payables 10,000 20,000 Reorganization expenses 2,400 Cash and bank 8,100 Stated Capital (@GH¢1.00/share) 10% Irredeemable Preference Shares (@GH¢1.00/share) 11,000 9,000 10% Debentures 8,000 Non-current Assets at Net Book Value 35,000 Retained Earnings (@ 1 January 2009) Debenture interest paid Preference dividend paid Interim ordinary dividend paid 3,000 400 450 1,600 Тах 500 Suspense 8,000 109,500 109,500 The following is to be taken into account 1. A building whose Net Book Value is currently GH¢5,000 was revalued to GH¢11,000. 2. A final ordinary dividend of GH¢0.10 per share is to be provided for, in addition to the interim dividend paid. 3. The balance on the corporation tax account represents an overprovision of tax for the previous year. Tax for the current year is estimated at GH¢3,000. 4. Closing inventory is GH¢12,000. 5. The balance on the suspense account represents the proceeds from the issue of 4,000 ordinary shares @ GH¢2.00/share raised on the last day of the year. Required: Prepare for Shakers Ltd a: a) Statement of comprehensive income for the year ended Dec 31 2009, b) Statement of changes in equity for the year ended Dec 31 2009, c) Statement of financial position as at Dec 31 2009. NB: Notes to the accounts are not required.

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
ChapterD: Investments
Section: Chapter Questions
Problem D.14EX: Balance sheet presentation of available-for-sale investments During 20Y8, its first year of...
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QUESTION Two The trial balance of SHAKERS LTD as at 31st December 2009 is as follows: GH¢ GH¢ Revenue and Purchases 20,000 50,000 8,000 Inventory Distribution costs 8,000 Administration expenses Receivables and Payables Reorganization expenses 15,550 10,000 20,000 2,400 Cash and bank 8,100 Stated Capital (@GH¢1.00/share) 10% Irredeemable Preference Shares (@GH¢1.00/share) 11,000 9,000 10% Debentures 8,000 Non-current Assets at Net Book Value 35,000 Retained Earnings (@ 1 January 2009) Debenture interest paid 3,000 400 Preference dividend paid Interim ordinary dividend paid 450 1,600 Тах 500 Suspense 8,000 109,500 109,500 The following is to be taken into account 1. A building whose Net Book Value is currently GH¢5,000 was revalued to GH¢11,000. 2. A final ordinary dividend of GH¢0.10 per share is to be provided for, in addition to the interim dividend paid. 3. The balance on the corporation tax account represents an overprovision of tax for the previous year. Tax for the current year is estimated at GH¢3,000. 4. Closing inventory is GH¢12,000. 5. The balance on the suspense account represents the proceeds from the issue of 4,000 ordinary shares @ GH¢2.00/share raised on the last day of the year. Required: Prepare for Shakers Ltd a: a) Statement of comprehensive income for the year ended Dec 31 2009, b) Statement of changes in equity for the year ended Dec 31 2009, c) Statement of financial position as at Dec 31 2009. NB: Notes to the accounts are not required.
Transcribed Image Text:QUESTION Two The trial balance of SHAKERS LTD as at 31st December 2009 is as follows: GH¢ GH¢ Revenue and Purchases 20,000 50,000 8,000 Inventory Distribution costs 8,000 Administration expenses Receivables and Payables Reorganization expenses 15,550 10,000 20,000 2,400 Cash and bank 8,100 Stated Capital (@GH¢1.00/share) 10% Irredeemable Preference Shares (@GH¢1.00/share) 11,000 9,000 10% Debentures 8,000 Non-current Assets at Net Book Value 35,000 Retained Earnings (@ 1 January 2009) Debenture interest paid 3,000 400 Preference dividend paid Interim ordinary dividend paid 450 1,600 Тах 500 Suspense 8,000 109,500 109,500 The following is to be taken into account 1. A building whose Net Book Value is currently GH¢5,000 was revalued to GH¢11,000. 2. A final ordinary dividend of GH¢0.10 per share is to be provided for, in addition to the interim dividend paid. 3. The balance on the corporation tax account represents an overprovision of tax for the previous year. Tax for the current year is estimated at GH¢3,000. 4. Closing inventory is GH¢12,000. 5. The balance on the suspense account represents the proceeds from the issue of 4,000 ordinary shares @ GH¢2.00/share raised on the last day of the year. Required: Prepare for Shakers Ltd a: a) Statement of comprehensive income for the year ended Dec 31 2009, b) Statement of changes in equity for the year ended Dec 31 2009, c) Statement of financial position as at Dec 31 2009. NB: Notes to the accounts are not required.
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