Trial Balance of Leisure Hotels as at June 30Issued 7% preference share capital SleachIssued ordinary share capital S1 cach6% DebenturesShare premiumBuildings at costFurniture at costEquipment at cotOpening inventoryAccumulated depreciationFurnitureEquipmentDirector's remunerationWages and salariesMotor expensesRates and insuranceSalesPurchasesGeneral expensesAdvertisingAudit feesDebenture interest paidAccounts receivablesAccounts payablesBank OverdraftGeneral reserveDividend paidRetained profits as at the beginning of the yearDebitS550,000.0070,000.0060,000.0010,000.0050,000.00252,000.0015,000.0012,000,00158,900.0020,000.0032,000.0010,000.002,100.0013,000.005,000.00Additional Information1. Inventory counted and valued on 30 June amounted to $8,000.2. Insurance includes $3,000 of cover that relates to the following year.3. Wages owing at 30 June amounts to $5,0004. A provision for bad debts is to be created at a level of 2% of debtorsCreditS70,000.00150,000.00250,000.0050,000.00Requireda) Prepare a statement of compincome for the year ended 30 Juneb) Prepare a statement of changes in equity for the year ended 30 Junec) Prepare a statement of financial position as at 30 June25,000.0020,000.00590,000.0033,000.001,260,000.00 1.260,000.0027,000.0015,000.0030,000.005. It is the policy of the business to depreciate furniture at 10% per annum using the straight-linemethod. Equipment is to be depreciated at 20 per cent.6. Corporation tax of $3.500 is to be provided for.7. The directors have proposed the following:Preference dividends are to be provided for$5,000 is to be transferred to a general reserve6. Transfer of $3,000 to a general reserve account.8. The authorised share capital of the company is 100,000 preference shares and 250,000 ordinaryshares both having a nominal value of $1.9. At the year-end the company issued to a private investor 50,000 additional ordinary sharesat a premium of $1.75, the company receiving the money in full. The company used $50,000from the issue of shares to pay off part of the debenture loan. Neither of these transactionshas been accounted for

An income statement is a financial report that indicates the revenue and expenses of a business. It…

Tral Balance of Leisure Hotels as at June 30 Issued 7% preference share capital SI each Issued ordinary share capital S1 cach 6% Debentures Share premium Buildings at cost Furniture at cost Equipment at cot Opening inventory Accumulated depreciation Furniture Equipment Director's remuneration Wages and salaries Motor expenses Rates and insurance Sales Purchases General expenses Advertising Audit fees Debenture interest paid Accounts receivables Accounts payables Bank Overdraft General reserve Dividend paid Retained profits as at the beginning of the year Debit S 550,000.00 70,000.00 6. Corporation tax of $3.500 is to be provided for 7. The directors have proposed the following Preference dividends are to be provided for $5,000 is to be transferred to a general reserve 60,000.00 10,000.00 50,000.00 252,000.00 15,000.00 12,000.00 158,900.00 20,000.00 32,000.00 10,000.00 2.100.00 13,000.00 5,000.00 Additional Information 1. Inventory counted and valued on 30 June amounted to $8,000 2. Insurance includes $3,000 of cover that relates to the following year 3. Wages owing at 30 June amounts to $5,000 Credit S 70,000.00 150,000.00 250,000.00 50,000.00 25,000.00 20,000.00 590,000.00 33,000.00 1.260,000.00 1,260,000.00 Required a) Prepare a statement of comprehensive income for the year ended 30 June b) Prepare a statement of changes in equity for the year ended 30 June c) Prepare a statement of financial position as at 30 June 27,000.00 15,000.00 30,000.00 4. A provision for bad debts is to be created at a level of 2% of debtors 5. It is the policy of the business to depreciate furniture at 10% per annum using the straight-line method. Equipment is to be depreciated at 20 per cent. 6. Transfer of $3,000 to a general reserve account. 8. The authorised share capital of the company is 100,000 preference shares and 250,000 ordinary shares both having a nominal value of $1. 9. At the year-end the company issued to a private investor 50,000 additional ordinary shares at a premium of $1.75, the company receiving the money in fall. The company used $50,000 from the issue of shares to pay off part of the debenture loan. Neither of these transactions has been accounted for

Tral Balance of Leisure Hotels as at June 30 Issued 7% preference share capital SI each Issued ordinary share capital S1 cach 6% Debentures Share premium Buildings at cost Furniture at cost Equipment at cot Opening inventory Accumulated depreciation Furniture Equipment Director's remuneration Wages and salaries Motor expenses Rates and insurance Sales Purchases General expenses Advertising Audit fees Debenture interest paid Accounts receivables Accounts payables Bank Overdraft General reserve Dividend paid Retained profits as at the beginning of the year Debit S 550,000.00 70,000.00 6. Corporation tax of $3.500 is to be provided for 7. The directors have proposed the following Preference dividends are to be provided for $5,000 is to be transferred to a general reserve 60,000.00 10,000.00 50,000.00 252,000.00 15,000.00 12,000.00 158,900.00 20,000.00 32,000.00 10,000.00 2.100.00 13,000.00 5,000.00 Additional Information 1. Inventory counted and valued on 30 June amounted to $8,000 2. Insurance includes $3,000 of cover that relates to the following year 3. Wages owing at 30 June amounts to $5,000 Credit S 70,000.00 150,000.00 250,000.00 50,000.00 25,000.00 20,000.00 590,000.00 33,000.00 1.260,000.00 1,260,000.00 Required a) Prepare a statement of comprehensive income for the year ended 30 June b) Prepare a statement of changes in equity for the year ended 30 June c) Prepare a statement of financial position as at 30 June 27,000.00 15,000.00 30,000.00 4. A provision for bad debts is to be created at a level of 2% of debtors 5. It is the policy of the business to depreciate furniture at 10% per annum using the straight-line method. Equipment is to be depreciated at 20 per cent. 6. Transfer of $3,000 to a general reserve account. 8. The authorised share capital of the company is 100,000 preference shares and 250,000 ordinary shares both having a nominal value of $1. 9. At the year-end the company issued to a private investor 50,000 additional ordinary shares at a premium of $1.75, the company receiving the money in fall. The company used $50,000 from the issue of shares to pay off part of the debenture loan. Neither of these transactions has been accounted for

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 17E

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