The  Whispering Cove  plc  has  provided  the  following as at December  31, 2017     DR CR Cost  of Sales 700,000   Closing  Stock 210,000   10 %  Debenture   350,000 Debenture  Interest  20,000   General  Reserves   40,000 Retained  Earnings 20,000   Goodwill 200,000   Ordinary Share Capital @ $2   400,000 10 %  Preference Share Capital @ $1   400,000 Sales  Turnover   1,300,000 Debtors 60,000   Bank   8,000 Administrative   Costs 122,000   Selling and  Distribution Costs 139,000   Property Plant & Equipment 600,000   Motor Vehicle 500,000   Provision for  Depreciation on Motor  Vehicle   40,000 Creditors   38,000 Interim  Ordinary  Shares Dividend 5,000     2,576,000 2,576,000   Additional  Details  Provided   The motor vehicle is to be depreciated  at  10%  p.a. on the reducing balance basis. The         annual  depreciation charge is to be added  equally to the  administrative  costs and selling        and  distribution costs   The administrative  costs  were  prepaid by  $2,000; while  the selling and  distribution costs         were  owing by  $6,000   The goodwill is  to be  written down  by  25%   Prior to the end  of the year  the directors  voted  to  support  a  resolution to pay final       ordinary shares  dividends  at  $0.10 per share; as well as  the amount due  for  the preference        shares dividends.`   The corporation tax  is  estimated  at  $40,000   Question   Prepare the following for the year ending December 31, 2017  :   a) The  Statement  of  Profit  and  Loss                                                                b) The Statement  of Change in Equity

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
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 16P: Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018,...
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Question

The  Whispering Cove  plc  has  provided  the  following as at December  31, 2017

 

 

DR

CR

Cost  of Sales

700,000

 

Closing  Stock

210,000

 

10 %  Debenture

 

350,000

Debenture  Interest 

20,000

 

General  Reserves

 

40,000

Retained  Earnings

20,000

 

Goodwill

200,000

 

Ordinary Share Capital @ $2

 

400,000

10 %  Preference Share Capital @ $1

 

400,000

Sales  Turnover

 

1,300,000

Debtors

60,000

 

Bank

 

8,000

Administrative   Costs

122,000

 

Selling and  Distribution Costs

139,000

 

Property Plant & Equipment

600,000

 

Motor Vehicle

500,000

 

Provision for  Depreciation on Motor  Vehicle

 

40,000

Creditors

 

38,000

Interim  Ordinary  Shares Dividend

5,000

 

 

2,576,000

2,576,000

 

Additional  Details  Provided

 

  1. The motor vehicle is to be depreciated  at  10%  p.a. on the reducing balance basis. The 

       annual  depreciation charge is to be added  equally to the  administrative  costs and selling

       and  distribution costs

 

  1. The administrative  costs  were  prepaid by  $2,000; while  the selling and  distribution costs 

       were  owing by  $6,000

 

  1. The goodwill is  to be  written down  by  25%

 

  1. Prior to the end  of the year  the directors  voted  to  support  a  resolution to pay final

      ordinary shares  dividends  at  $0.10 per share; as well as  the amount due  for  the preference 

      shares dividends.`

 

  1. The corporation tax  is  estimated  at  $40,000

 

Question

 

  1. Prepare the following for the year ending December 31, 2017  :

 

  1. a) The  Statement  of  Profit  and  Loss                                                             

 

  1. b) The Statement  of Change in Equity                                                             

 

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