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Additronal in for mation 1. Inventory at the year end at cost $70,000, It was told that the inventory can be sold at $75,000 at expenses $4,995 2. Rental accrued at the year-end $5,500 has not been recorded 3. Wages are prepaid by $3,000 4. Allowance for receivable is provided at 3% 5. Depreciation policy of the company are follow: • Property, plant and equipment 10% p.a at cost - Motor vehicle 10% p.a at the reducing balance method 6. Machine was disposed for $45,000. The original cost and the net book value of the machine were $90,000 and $42,000 respectively. Prepare Income statement and balance sheet and show the working step for additional information.

Additronal in for mation 1. Inventory at the year end at cost $70,000, It was told that the inventory can be sold at $75,000 at expenses $4,995 2. Rental accrued at the year-end $5,500 has not been recorded 3. Wages are prepaid by $3,000 4. Allowance for receivable is provided at 3% 5. Depreciation policy of the company are follow: • Property, plant and equipment 10% p.a at cost - Motor vehicle 10% p.a at the reducing balance method 6. Machine was disposed for $45,000. The original cost and the net book value of the machine were $90,000 and $42,000 respectively. Prepare Income statement and balance sheet and show the working step for additional information.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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T.Co Trading Trial balance as at 31 December 2017 Interest income Revenue Water and electricity Wages Carriage outwards Insurance Inventories @ 1 January 2017 Property, plant and equipment Motor vehicle Accumulated depreciation @ 1 January 2017 - Property, plant and equipment Accumulated depreciation @ 1 January 2017 - Motor vehicle Cash at bank Capital @1 January 2018 Prepayment Drawings Payables Allowance for receivable @ 1 January 2018 Carriage inwards Purchases Bank overdraft Advertising Transport and travelling Rental Discounted received Irrecoverable debt Interest payable Receivables Bank loan 20,000 1,657,000 20,000 105,000 50,000 45,000 65,000 750,000 475,000 100,000 130,000 50,000 500,000 25,000 80,000 110,000 3,000 75,000 800,000 75,000 55,000 25,000 130,000 10,000 10,000 5,000 150,000 300,000 2,910,000 2,910,000
Transcribed Image Text:T.Co Trading Trial balance as at 31 December 2017 Interest income Revenue Water and electricity Wages Carriage outwards Insurance Inventories @ 1 January 2017 Property, plant and equipment Motor vehicle Accumulated depreciation @ 1 January 2017 - Property, plant and equipment Accumulated depreciation @ 1 January 2017 - Motor vehicle Cash at bank Capital @1 January 2018 Prepayment Drawings Payables Allowance for receivable @ 1 January 2018 Carriage inwards Purchases Bank overdraft Advertising Transport and travelling Rental Discounted received Irrecoverable debt Interest payable Receivables Bank loan 20,000 1,657,000 20,000 105,000 50,000 45,000 65,000 750,000 475,000 100,000 130,000 50,000 500,000 25,000 80,000 110,000 3,000 75,000 800,000 75,000 55,000 25,000 130,000 10,000 10,000 5,000 150,000 300,000 2,910,000 2,910,000
Additronal infor mation 1. Inventory at the year end at cost $70,000, It was told that the inventory can be sold at $75,000 at expenses $4,995 2. Rental accrued at the year-end $5,500 has not been recorded 3. Wages are prepaid by $3,000 4. Allowance for receivable is provided at 3% 5. Depreciation policy of the company are follow: - Property, plant and equipment 10 % p.a at cost - Motor vehicle 10% p.a at the reducing balance method 6. Machine was disposed for $45,000. The original cost and the net book value of the machine were $90,000 and $42,000 respectively. Prepare Income statement and balance sheet and show the working step for additional information.
Transcribed Image Text:Additronal infor mation 1. Inventory at the year end at cost $70,000, It was told that the inventory can be sold at $75,000 at expenses $4,995 2. Rental accrued at the year-end $5,500 has not been recorded 3. Wages are prepaid by $3,000 4. Allowance for receivable is provided at 3% 5. Depreciation policy of the company are follow: - Property, plant and equipment 10 % p.a at cost - Motor vehicle 10% p.a at the reducing balance method 6. Machine was disposed for $45,000. The original cost and the net book value of the machine were $90,000 and $42,000 respectively. Prepare Income statement and balance sheet and show the working step for additional information.
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