Given the following information regarding New Nike Lad for the year to 31 December 2022 as shown below: Ordinary Share Capital (E0.50 each) 5% Preference share (El cach) Share Premium General Reserve Retained Earnings brought forward 10% Loan notes Building at cost Motor vehicle Debit Credit 0000 8,000 0000 2.000 200 150 1,800 14,560 47,000 4,900 Fixtures and Fittings 800 Accounts receivable and accounts payable 5050 10,395 Inventory 1 Jan 2022 3,200 Bank 8,480 Operating profit for the year 17,325 93,430 93,430 4 New Nike Lad provided the following additional information at 31 December 2022: The company issued 2,000,000 £0.50 ordinary shares for £1 per shares. The directors agree for an interim dividend of £1,600,000 to paid after paying the preference dividend, of 5% £1,000,000 is to be transferred to general reserve. The loan carries interest of 10% per annum. The capital sum is doe for repayment in two equal instalments, on 30 June 2023 and 30 June 2024. •The corporate tax charge for the year is £4,000,000. Required: Prepare the following financial statements for New Nike Ltd for the year ended 31 December 2022: Income statement extract (starting from the operating profit) The Statement of Changes in Equity The Statement of Financial Position (Balance Sheet)
Given the following information regarding New Nike Lad for the year to 31 December 2022 as shown below: Ordinary Share Capital (E0.50 each) 5% Preference share (El cach) Share Premium General Reserve Retained Earnings brought forward 10% Loan notes Building at cost Motor vehicle Debit Credit 0000 8,000 0000 2.000 200 150 1,800 14,560 47,000 4,900 Fixtures and Fittings 800 Accounts receivable and accounts payable 5050 10,395 Inventory 1 Jan 2022 3,200 Bank 8,480 Operating profit for the year 17,325 93,430 93,430 4 New Nike Lad provided the following additional information at 31 December 2022: The company issued 2,000,000 £0.50 ordinary shares for £1 per shares. The directors agree for an interim dividend of £1,600,000 to paid after paying the preference dividend, of 5% £1,000,000 is to be transferred to general reserve. The loan carries interest of 10% per annum. The capital sum is doe for repayment in two equal instalments, on 30 June 2023 and 30 June 2024. •The corporate tax charge for the year is £4,000,000. Required: Prepare the following financial statements for New Nike Ltd for the year ended 31 December 2022: Income statement extract (starting from the operating profit) The Statement of Changes in Equity The Statement of Financial Position (Balance Sheet)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please help me
Transcribed Image Text:hl=en-GB#
Preparation of Company Account - IS, SUCE & SUFF
Given the following information regarding New Nike Ltd for the year to 31 December 2022
as shown below:
Ordinary Share Capital (C0.50 each)
5% Preference share (E1 each)
Share Premium
General Reserve
Retained Earnings brought forward
10% Loan notes
Building at cost
Motor vehicle
Debit
c000
Credit
000
2.000
200
150
1,800
14,560
47,000
68,000
4,900
Fixtures and Fittings
2.800
Accounts receivable and accounts payable 6,050 10.395
Inventory 1 Jan 2022
3.200
Bank
8,480
Operating profit for the year
17,325
93,430 93,430
New Nike Ltd provided the following additional information at 31 December 2022:
•The company issued 2,000,000 £0.50 ordinary shares for £1 per shares.
The directors agree for an interim dividend of £1,600,000 to paid after paying the
preference dividend, of 5%
£1,000,000 is to be transferred to general reserve.
The loan carries interest of 10% per annum. The capital sum is due for repayment
in two equal instalments, on 30 June 2023 and 30 June 2024,
The corporate tax charge for the year is £4,000,000.
Required:
Prepare the following financial statements for New Nike Ltd for the year ended 31 December
2022:
a. Income statement extract (starting from the operating profit)
The Statement of Changes in Equity
The Statement of Financial Position (Balance Sheet)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education