A trainee accountant produced the following summarised statement of financial position for Hui Co at the end of its most recent financial year. (Click here to view the financial data.) After this financial statement was prepared, it was discovered that the following transactions, which took place on the last day of the financial year, had not been taken into account: 1. A motor van for making deliveries was acquired for £20,000 and was financed by a long-term loan. 2. Inventories costing £10,000 were acquired on credit. 3. The owner introduced a motor car into the business, which was valued at £15,000. In addition, it was found that a machine purchased for use within the business for £9,000 had been incorrectly included as part of inventories. Required: Produce a revised statement of financial position for the business using the pro-forma statement provided below. Statement of financial position as at end of most recent financial year ASSETS Non-current assets Current assets Total assets EQUITY AND LIABILITIES Equity Non-current liabilities Current liabilities Total equity and liabilities ☐☐☐☐ Data table ASSETS Non-current assets. Current assets Total assets EQUITY AND LIABILITIES Equity Non-current liabilities Current liabilities Total equity and liabilities 220.000 154,000 374,000 169,000 80,000 125,000 374,000 - X
A trainee accountant produced the following summarised statement of financial position for Hui Co at the end of its most recent financial year. (Click here to view the financial data.) After this financial statement was prepared, it was discovered that the following transactions, which took place on the last day of the financial year, had not been taken into account: 1. A motor van for making deliveries was acquired for £20,000 and was financed by a long-term loan. 2. Inventories costing £10,000 were acquired on credit. 3. The owner introduced a motor car into the business, which was valued at £15,000. In addition, it was found that a machine purchased for use within the business for £9,000 had been incorrectly included as part of inventories. Required: Produce a revised statement of financial position for the business using the pro-forma statement provided below. Statement of financial position as at end of most recent financial year ASSETS Non-current assets Current assets Total assets EQUITY AND LIABILITIES Equity Non-current liabilities Current liabilities Total equity and liabilities ☐☐☐☐ Data table ASSETS Non-current assets. Current assets Total assets EQUITY AND LIABILITIES Equity Non-current liabilities Current liabilities Total equity and liabilities 220.000 154,000 374,000 169,000 80,000 125,000 374,000 - X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:A trainee accountant produced the following summarised statement of financial position for Hui Co at the end of its most recent financial year.
(Click here to view the financial data.)
After this financial statement was prepared, it was discovered that the following transactions, which took place on the last day of the financial year, had not been taken into account:
1. A motor van for making deliveries was acquired for £20,000 and was financed by a long-term loan.
2. Inventories costing £10,000 were acquired on credit.
3. The owner introduced a motor car into the business, which was valued at £15,000.
In addition, it was found that a machine purchased for use within the business for £9,000 had been incorrectly included as part of inventories.
Required:
Produce a revised statement of financial position for the business using the pro-forma statement provided below.
Statement of financial position as at end of most recent financial year
£
ASSETS
Non-current assets
Current assets
Total assets
EQUITY AND LIABILITIES
Equity
Non-current liabilities
Current liabilities
Total equity and liabilities
Data table
ASSETS
Non-current assets
Current assets
Total assets
EQUITY AND LIABILITIES
Equity
Non-current liabilities
Current liabilities
Total equity and liabilities
Print
£
220,000
154,000
374,000
169,000
80,000
125,000
374,000
Done
- X
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