The following Trial Balance was prepared from the books of Maxwell Productions Ltd on December 31, 2010 and presented to you the Financial Accountant for analysis: Trial Balance Details/Accounts Dr $ Cr $ Insurance -F 1,200,000 Direct expenses-P 4,000,000 Bills payable- B 150,000 Net sales-T 80,000,000 Office furniture and fittings-B 4,500,000 Accumulated depreciation on furniture & fittings-B 900,000 Return outwards of direct raw materials-P 330,000 Rent F&T 3,000,000 500,000 Bank overdraft- B 550,000 Direct raw materials purchased-P 20,330,000 Indirect factory wages-F 4,000,000 Stock of direct raw materials January 1, 2010-P 6,500,000 Stationery -T 1,100,000 Provision for unrealized profit- B&T 600,000 Capital -B 28,940,000 Bad debts-T 370,000 Provision for bad and doubtful debts-B 400,000 Production workers salaries-P 12,000,000 Cash in hand-B 1,500,000 Accounts payable-B 5,600,000 Electricity -F 2,400,000 Commission -T 4,800,000 1,000,000 Stock of finished goods January 1, 2010-T 6,600,000 Discounts-T 800,000 750,000 Carriage inwards of direct raw materials-P 1,600,000 Administrative salaries-T 8,400,000 Accounts receivable-B 9,000,000 Motor vehicles-B 20,000,000 Provision for depreciation on motor vehicles-B 8,000,000 Work in progress, January 1, 2010-F 3,500,000 Bills receivable-B 420,000 Plant and machinery-B 15,000,000 Accumulated depreciation on plant and machinery-B 6,000,000 Motor vehicles repair cost-F 700,000 Cash drawings -B 2,000,000 133,720,000 133,720,000 See notes on next page. Notes: Depreciation is to be charged as follows: motor vehicles 20% reducing balance; office furniture and fittings 10% straight line; and plant and machinery 10% reducing balance. Insurance amounting to $120,000 was unpaid as at December 31, 2010. Motor vehicle expenses are to be apportioned 3:2 between factory and office respectively. The company adds 10% factory profit to its cost of production. Rent expense is to be apportioned 3:1 between factory and office respectively; 60% of the insurance relates to the factory; and ¾ of the electricity usage relates to the factory. Commission revenue amounting to $150,000 was due to the company as at December 31, 2010. The provision for bad and doubtful debts is to be adjusted to 1½ % of debtors. Indirect factory wages accrued as at December 31, 2010 amounted to $180,000. Stocks as at December 31, 2010 were as follows: Work in progress $4,900,000; Finished goods, $7,700,000 and direct raw materials, $5,000,000. Required: Prepare Manufacturing, Trading and Profit and Loss Account for the year ending December 31, 2010. A Balance Sheet as at December 31, 2010.

The following Trial Balance was prepared from the books of Maxwell Productions Ltd on December 31, 2010 and presented to you the Financial Accountant for analysis: Trial Balance Details/Accounts Dr $ Cr $ Insurance -F 1,200,000 Direct expenses-P 4,000,000 Bills payable- B 150,000 Net sales-T 80,000,000 Office furniture and fittings-B 4,500,000 Accumulated depreciation on furniture & fittings-B 900,000 Return outwards of direct raw materials-P 330,000 Rent F&T 3,000,000 500,000 Bank overdraft- B 550,000 Direct raw materials purchased-P 20,330,000 Indirect factory wages-F 4,000,000 Stock of direct raw materials January 1, 2010-P 6,500,000 Stationery -T 1,100,000 Provision for unrealized profit- B&T 600,000 Capital -B 28,940,000 Bad debts-T 370,000 Provision for bad and doubtful debts-B 400,000 Production workers salaries-P 12,000,000 Cash in hand-B 1,500,000 Accounts payable-B 5,600,000 Electricity -F 2,400,000 Commission -T 4,800,000 1,000,000 Stock of finished goods January 1, 2010-T 6,600,000 Discounts-T 800,000 750,000 Carriage inwards of direct raw materials-P 1,600,000 Administrative salaries-T 8,400,000 Accounts receivable-B 9,000,000 Motor vehicles-B 20,000,000 Provision for depreciation on motor vehicles-B 8,000,000 Work in progress, January 1, 2010-F 3,500,000 Bills receivable-B 420,000 Plant and machinery-B 15,000,000 Accumulated depreciation on plant and machinery-B 6,000,000 Motor vehicles repair cost-F 700,000 Cash drawings -B 2,000,000 133,720,000 133,720,000 See notes on next page. Notes: Depreciation is to be charged as follows: motor vehicles 20% reducing balance; office furniture and fittings 10% straight line; and plant and machinery 10% reducing balance. Insurance amounting to $120,000 was unpaid as at December 31, 2010. Motor vehicle expenses are to be apportioned 3:2 between factory and office respectively. The company adds 10% factory profit to its cost of production. Rent expense is to be apportioned 3:1 between factory and office respectively; 60% of the insurance relates to the factory; and ¾ of the electricity usage relates to the factory. Commission revenue amounting to $150,000 was due to the company as at December 31, 2010. The provision for bad and doubtful debts is to be adjusted to 1½ % of debtors. Indirect factory wages accrued as at December 31, 2010 amounted to $180,000. Stocks as at December 31, 2010 were as follows: Work in progress $4,900,000; Finished goods, $7,700,000 and direct raw materials, $5,000,000. Required: Prepare Manufacturing, Trading and Profit and Loss Account for the year ending December 31, 2010. A Balance Sheet as at December 31, 2010.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter14: Statement Of Cash Flows (cashflow)

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Problem 1R: The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal...

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The following Trial Balance was prepared from the books of Maxwell Productions Ltd on December 31, 2010 and presented to you the Financial Accountant for analysis:

Trial Balance

Details/Accounts	Dr $	Cr $
Insurance -F	1,200,000
Direct expenses-P	4,000,000
Bills payable- B		150,000
Net sales-T		80,000,000
Office furniture and fittings-B	4,500,000
Accumulated depreciation on furniture & fittings-B		900,000
Return outwards of direct raw materials-P		330,000
Rent F&T	3,000,000	500,000
Bank overdraft- B		550,000
Direct raw materials purchased-P	20,330,000
Indirect factory wages-F	4,000,000
Stock of direct raw materials January 1, 2010-P	6,500,000
Stationery -T	1,100,000
Provision for unrealized profit- B&T		600,000
Capital -B		28,940,000
Bad debts-T	370,000
Provision for bad and doubtful debts-B		400,000
Production workers salaries-P	12,000,000
Cash in hand-B	1,500,000
Accounts payable-B		5,600,000
Electricity -F	2,400,000
Commission -T	4,800,000	1,000,000
Stock of finished goods January 1, 2010-T	6,600,000
Discounts-T	800,000	750,000
Carriage inwards of direct raw materials-P	1,600,000
Administrative salaries-T	8,400,000
Accounts receivable-B	9,000,000
Motor vehicles-B	20,000,000
Provision for depreciation on motor vehicles-B		8,000,000
Work in progress, January 1, 2010-F	3,500,000
Bills receivable-B	420,000
Plant and machinery-B	15,000,000
Accumulated depreciation on plant and machinery-B		6,000,000
Motor vehicles repair cost-F	700,000
Cash drawings -B	2,000,000
	133,720,000	133,720,000

See notes on next page.

Notes:

Depreciation is to be charged as follows: motor vehicles 20% reducing balance; office furniture and fittings 10% straight line; and plant and machinery 10% reducing balance.
Insurance amounting to $120,000 was unpaid as at December 31, 2010.
Motor vehicle expenses are to be apportioned 3:2 between factory and office respectively.
The company adds 10% factory profit to its cost of production.
Rent expense is to be apportioned 3:1 between factory and office respectively; 60% of the insurance relates to the factory; and ¾ of the electricity usage relates to the factory.
Commission revenue amounting to $150,000 was due to the company as at December 31, 2010.
The provision for bad and doubtful debts is to be adjusted to 1½ % of debtors.
Indirect factory wages accrued as at December 31, 2010 amounted to $180,000.
Stocks as at December 31, 2010 were as follows: Work in progress $4,900,000; Finished goods, $7,700,000 and direct raw materials, $5,000,000.

Required:

Prepare Manufacturing, Trading and Profit and Loss Account for the year ending December 31, 2010.
A Balance Sheet as at December 31, 2010.

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