The following trial balance was extracted from the books of JCV Ltd. as at 30 September 2019: $ $ Land and buildings 151,000 Motor vehicles at cost 60,000 Accumulated depreciation on motor vehicle (1 October 2018) 15,000 Purchases and sales 1,204,000 1,574,050 Inventory (1 October 2018) 91,000 Revenue reserves 66,700 General expenses 2,325 Salaries and wages 244,150 Electricity 5,600 Bank balance 42,200 Interim dividend paid 7,000 Motor vehicles expenses 4,475 Insurance 7,150 Discounts allowed and discounts received 10,900 8,300 Bad debts written off 3,050 Accounts receivable and accounts payable 136,500 100,700 Debenture interest paid 2,400 Ordinary shares ($ 40 par value) 160,000 Share premium 36,000 8% debentures 60,000 Cash in hand 9,000 Directors’ fees 40,000 2,020,750 2,020,750 Additional information: 1Goods costing $710 purchased on credit on 29 September 2019, were in transit and therefore had not been entered in the books by close of business on 30 September 2019. Inventory as at September 2019 was valued at $112, 300 A debtor who owed the company $1,500 was declared bankrupt. His debt has not yet been written off. Allowance for doubtful debts is to be set at 2% of the outstanding receivables. Depreciation is to be provided on motor vehicles at a rate of 20% per annum on cost. As at 30 September 2019, outstanding motor vehicles expenses amounted to $125, 000 while pre-paid insurance amounted to $150. Invoices issued amounted to $950 had completely been omitted from the records as at 30 September 2019. Provision is to be made for outstanding debenture interest and corporation tax of $22,975. The directors have proposed a final dividend of $2.50 per share. Required: Income statement for the year ended 30 September 2019. Statement of financial position as at 30 September 2019.
The following trial balance was extracted from the books of JCV Ltd. as at 30 September 2019: $ $ Land and buildings 151,000 Motor vehicles at cost 60,000 Accumulated depreciation on motor vehicle (1 October 2018) 15,000 Purchases and sales 1,204,000 1,574,050 Inventory (1 October 2018) 91,000 Revenue reserves 66,700 General expenses 2,325 Salaries and wages 244,150 Electricity 5,600 Bank balance 42,200 Interim dividend paid 7,000 Motor vehicles expenses 4,475 Insurance 7,150 Discounts allowed and discounts received 10,900 8,300 Bad debts written off 3,050 Accounts receivable and accounts payable 136,500 100,700 Debenture interest paid 2,400 Ordinary shares ($ 40 par value) 160,000 Share premium 36,000 8% debentures 60,000 Cash in hand 9,000 Directors’ fees 40,000 2,020,750 2,020,750 Additional information: 1Goods costing $710 purchased on credit on 29 September 2019, were in transit and therefore had not been entered in the books by close of business on 30 September 2019. Inventory as at September 2019 was valued at $112, 300 A debtor who owed the company $1,500 was declared bankrupt. His debt has not yet been written off. Allowance for doubtful debts is to be set at 2% of the outstanding receivables. Depreciation is to be provided on motor vehicles at a rate of 20% per annum on cost. As at 30 September 2019, outstanding motor vehicles expenses amounted to $125, 000 while pre-paid insurance amounted to $150. Invoices issued amounted to $950 had completely been omitted from the records as at 30 September 2019. Provision is to be made for outstanding debenture interest and corporation tax of $22,975. The directors have proposed a final dividend of $2.50 per share. Required: Income statement for the year ended 30 September 2019. Statement of financial position as at 30 September 2019.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
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Question
The following
$ | $ | |
---|---|---|
Land and buildings | 151,000 | |
Motor vehicles at cost | 60,000 | |
15,000 | ||
Purchases and sales | 1,204,000 | 1,574,050 |
Inventory (1 October 2018) | 91,000 | |
Revenue reserves | 66,700 | |
General expenses | 2,325 | |
Salaries and wages | 244,150 | |
Electricity | 5,600 | |
Bank balance | 42,200 | |
Interim dividend paid | 7,000 | |
Motor vehicles expenses | 4,475 | |
Insurance | 7,150 | |
Discounts allowed and discounts received | 10,900 | 8,300 |
3,050 | ||
136,500 | 100,700 | |
Debenture interest paid | 2,400 | |
Ordinary shares ($ 40 par value) | 160,000 | |
Share premium | 36,000 | |
8% debentures | 60,000 | |
Cash in hand | 9,000 | |
Directors’ fees | 40,000 | |
2,020,750 | 2,020,750 |
Additional information:
- 1Goods costing $710 purchased on credit on 29 September 2019, were in transit and therefore had not been entered in the books by close of business on 30 September 2019.
- Inventory as at September 2019 was valued at $112, 300
- A debtor who owed the company $1,500 was declared bankrupt. His debt has not yet been written off.
- Allowance for doubtful debts is to be set at 2% of the outstanding receivables.
- Depreciation is to be provided on motor vehicles at a rate of 20% per annum on cost.
- As at 30 September 2019, outstanding motor vehicles expenses amounted to $125, 000 while pre-paid insurance amounted to $150.
- Invoices issued amounted to $950 had completely been omitted from the records as at 30 September 2019.
- Provision is to be made for outstanding debenture interest and corporation tax of $22,975.
- The directors have proposed a final dividend of $2.50 per share.
Required:
- Income statement for the year ended 30 September 2019.
Statement of financial position as at 30 September 2019.
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