QUESTION 1 The following balances relate to Wales plc for the year ended 31st December 2022: £ £1 ordinary shares 10% £1 preference shares 2% Debentures Plant and equipment Stock at 31st December 2022 Sales Cost of sales Trade receivable Trade payable Cash and bank Retained profits at 1st January 2022 Ordinary dividend paid Preference dividend paid Administrative expenses Interest paid Directors remuneration Distribution costs The following information is relevant: 1. Corporation tax for the year is estimated at £100,000. 1,250,000 510,850 578,650 170,125 96,000 20,000 30,000 30,000 2,000 5,000 28,000 2.720.625 £ 900,000 500,000 200,000 800,000 188,625 132,000 2.720.625 2. Salesmen are owed commission of £3,000 in respect of December sales. It will be paid on 31st January 2023 and has not been recorded in the ledger accounts yet. 3. Goods valued at £980 were sent to customers on 31st December 2022. Payment is due on 28 February 2023. This has not been recorded in the ledger accounts yet. 4. The preference shares should be included within equity.

QUESTION 1 The following balances relate to Wales plc for the year ended 31st December 2022: £ £1 ordinary shares 10% £1 preference shares 2% Debentures Plant and equipment Stock at 31st December 2022 Sales Cost of sales Trade receivable Trade payable Cash and bank Retained profits at 1st January 2022 Ordinary dividend paid Preference dividend paid Administrative expenses Interest paid Directors remuneration Distribution costs The following information is relevant: 1. Corporation tax for the year is estimated at £100,000. 1,250,000 510,850 578,650 170,125 96,000 20,000 30,000 30,000 2,000 5,000 28,000 2.720.625 £ 900,000 500,000 200,000 800,000 188,625 132,000 2.720.625 2. Salesmen are owed commission of £3,000 in respect of December sales. It will be paid on 31st January 2023 and has not been recorded in the ledger accounts yet. 3. Goods valued at £980 were sent to customers on 31st December 2022. Payment is due on 28 February 2023. This has not been recorded in the ledger accounts yet. 4. The preference shares should be included within equity.

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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