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 2. The administrative costs were prepaid by $2,000; while the selling and distribution costs were owing by $6,000 3.The goodwill is to be written down by 25% 4. 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.` 5. The corporation tax is estimated at $40,000 Required 1. Prepare the following for the year ending December 31, 2017: The Statement of Profit and Loss The Statement of Change in Equity NOTE : The Statement of Financial Position is NOT required 2. State Six factors that may influence a company’s decision to pay dividends
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 |
|
|
20,000 |
|
|
|
200,000 |
|
|
Ordinary Share Capital @ $2 |
|
400,000 |
|
10 % |
|
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 |
|
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
2. The administrative costs were prepaid by $2,000; while the selling and distribution costs
were owing by $6,000
3.The goodwill is to be written down by 25%
4. 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.`
5. The corporation tax is estimated at $40,000
Required
1. Prepare the following for the year ending December 31, 2017:
The Statement of
The Statement of Change in Equity
NOTE : The
2. State Six factors that may influence a company’s decision to pay dividends
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