The business carried on by Kaitlyn under the name "Lost Horizon" was taken over as a running business with effect from 1st July, 2015 by North Horizon Ltd. which was incorporated on 1st October, 2015. The same set of books was continued since there was no change in the type of business and the following particulars of profits for the year ended 30th June, 2016 were available: $ Sales : Company period 40,000 Prior period 10,000 50,000 Selling Expenses 2,000 Salaries 3,600 Directors' Fees 2,400 Interest on Capital (upto 30-9-2015) 700 Variable Expenses 1,500 Depreciation 2,800 Rent 4,800 Purchases 25,000 Carriage Inwards 1,019 43,819 Net Profit 6,181 The purchase price (including carriage inwards) for the company period had increased by 10 per cent as compared to pre-incorporation period. No stocks were carried either at the beginning or at the end. You are required to draw up a Statement of Profit and Loss showing the amount of pre and post incorporation profits stating the basis of allocation of expenses. %24

The business carried on by Kaitlyn under the name "Lost Horizon" was taken over as a running business with effect from 1st July, 2015 by North Horizon Ltd. which was incorporated on 1st October, 2015. The same set of books was continued since there was no change in the type of business and the following particulars of profits for the year ended 30th June, 2016 were available: $ Sales : Company period 40,000 Prior period 10,000 50,000 Selling Expenses 2,000 Salaries 3,600 Directors' Fees 2,400 Interest on Capital (upto 30-9-2015) 700 Variable Expenses 1,500 Depreciation 2,800 Rent 4,800 Purchases 25,000 Carriage Inwards 1,019 43,819 Net Profit 6,181 The purchase price (including carriage inwards) for the company period had increased by 10 per cent as compared to pre-incorporation period. No stocks were carried either at the beginning or at the end. You are required to draw up a Statement of Profit and Loss showing the amount of pre and post incorporation profits stating the basis of allocation of expenses. %24

Name: The business carried on by Kaitlyn under the name "Lost Horizon" was
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: The business carried on by Kaitlyn under the name "Lost Horizon" was taken over as a runningbusiness with effect from 1st July, 2015 by North Horizon Ltd. which was incorporated on 1st October,2015. The same set of books was continued since there wa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Selected account balances from the two companies’ individual records were as follows:…

A: Consideration Transferred at Fair Value = $ 600,000 Book Value Acquired = $420,000 Acquisition Date…

Q: Several months after Ames Company's 2011 financial statements were issued, Ames disposed of a…

A: The answer is given below

Q: Sales Cost of Sales Operating Expense Consolidated Income seaton Company. The consolidated income…

A: A consolidated income statement refers to a financial statement showing all the expenses and…

Q: The directors of Transport Ltd produced the following Statement of profit or loss account for 2017…

A: GIVEN Statement of Profit or Loss Account for the year ended 31st December 2017 Revenue…

Q: d. Company D has revenue of $783,000 and net income of $21,000 after income tax expense of $17,000.…

A: "Since you have posted multiple questions we will solve the first question for you as our Q&A…

Q: You are a manager at Zoetis, Inc. You will research the company and provide information about it to…

A: Horizontal analysis: Under horizontal analysis, percentage change of each line item of the current…

Q: INFORMATION The following information was obtained from the financial records of Fiona Limited:…

A: In conclusion, Fiona Limited generated an operating profit of R4,700,000 for the year ended December…

Q: Presented below are the comparative income and retained earnings statements for Denise Habbe Inc.…

A: The Statement of Retained Earnings is an important financial document that shows the significance of…

Q: None

A: Step 1: To compute Akosua Company Ltd's assessable income for each relevant year, it's necessary to…

Q: 1. Calculate the company's net profit margin expressed as a percent. (Round your answer to the…

A: 1) In this question we have to calculate net profit margin ratio. Let us calculate net profit ratio…

Q: Cumber Ltd. has been in business for several years and has the following information for its…

A: Journal entry is an art of recording, summarizing and classifying business transactions into…

Q: want answer for all Question provide it

A: 1) Gross Profit Ratio for inventory transferred in 2014 = (Transfer Price - Cost to Maya)/Transfer…

Q: S Ltd is considering buying the business of R Ltd the final accounts of which for the last 3 years…

A: Trading cash flow refers to the cash flow from core operations of the business.

Q: The Houston Manufacturing Company presents the following partial lists of account balances, after…

A: According to the given question, we are required to prepare the single-step income statement and…

Q: Blossom Ltd. had sales revenue of £669,600 in 2022. Other items recorded du Cost of goods sold…

A: This question belongs to the income statement which is the concept of accounting. This crucial…

Q: Income statements for the years ended 30 June 2018 £000 2,600 (1,560) 1,040 Sales revenue Cost of…

A: Financial ratios:Financial ratios are quantitative tools used to assess the financial health and…

Q: The financial statements for Joe Inc. and Lorens Corp., just prior to their combination, for the…

A: Step 1:a. The following journal entries in the books of(1) The issuance of stock by Joe; and (2) The…

Q: Following are financial statements for Moore Company and Kırby Company for 2018: Moore Kirby

A: Consolidated financial statements are financial statements of an entity with multiple divisions or…

Q: 31,000 17,000 Net sales $ Cost of goods sold $ Selling and administrative Interest income 330…

A: A multiple-step income statement is prepared by dividing the revenue and costs into operating and…

Q: David and Roger Ltd is an expanding public company selling a variety of products (only on credit).…

A: The financial ratios are the measures of the financial performance and growth of a corporation.…

Q: Data taken from the accounting records of Sherri's Designs on December 31 are shown. Operating…

A: An organization's financial outcomes for a specific time period are shown on the income statement.…

Q: David and Roger Ltd is an expanding public company selling a variety of products (only on credit).…

A: The Current Ratio: The current ratio is the ratio of current assets and current liabilities and is…

Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

The business carried on by Kaitlyn under the name "Lost Horizon" was taken over as a running
business with effect from 1st July, 2015 by North Horizon Ltd. which was incorporated on 1st October,
2015. The same set of books was continued since there was no change in the type of business and the
following particulars of profits for the year ended 30th June, 2016 were available:
$
Sales : Company period
40,000
Prior period
10,000
50,000
Selling Expenses
2,000
Salaries
3,600
Directors' Fees
2,400
Interest on Capital (upto 30-9-2015)
700
Variable Expenses
1,500
Depreciation
2,800
Rent
4,800
Purchases
25,000
Carriage Inwards
1,019
43,819
Net Profit
6,181
The purchase price (including carriage inwards) for the company period had increased by 10 per
cent as compared to pre-incorporation period. No stocks were carried either at the beginning or at the
end.
You are required to draw up a Statement of Profit and Loss showing the amount of pre and post
incorporation profits stating the basis of allocation of expenses.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Statement showing the profit and Loss Account

VIEW

Step 2 working Note

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

The following Income Statement information has been obtained from the books of Unlimited Liquors Corporation for the year ended March 31, 2022. The Income tax rate is 40% and the company has 50,000 shares of common stock outstanding. Sales Revenue $890,000 Cost of Goods sold 300,000 Operating expenses 220,000 Income from discontinued operations 140,000 Loss on disposal of discontinued operations 60,000 1. Determine the income or loss from discontinued operations as reported on the Income Statement 2. Determine the net income or loss from the discontinued segment of the company as reported on the Income Statement 3. What is the EPS of the company
The following information has been taken from the Ledger of Numan Corporation for the year ended on June 30, 2015. Stock of material, June 30 2015 Rs. 15,700 Stock of materials, July 1, 2014 12,000 Material purchased during the year 46,250 Carriage outward 1,075 Carriage inward 1,786 Salaries – Factory 1,625 Salaries – Office 3,150 Discount Expenses 725 Bad debts written off 1,628 Repairs of plant, machineries and tools 1,113 Rent and insurance – Factory 2,125 Rent and insurance – Office 500 Sales 115,275 Travelling Expenses 525 Traveler’s salaries and commission 1,925 Productive wages 31,500 Depreciation of machinery and tools 1,625 Depreciation of office furniture 75 Director’s fees 1,500 Gas, and water – Factory 300 Gas and water – Office 100 Manager’s salary (3/4th factory, 1/4th office) 2,500 General Expenses 850 Calculate Conversion…
Please provide answer in text (Without image)
The directors of Transport Ltd produced the following Statement of profit or loss account for 2017 and statement of financial Position as 31st December 2017 with the 2016 comparatives. Transport Ltd Statement of Profit or Loss Account for the year ended 31st December 2017 Revenue 320,000 Cost of Sales (143,000) Gross Profit 177,000 Interest received 5,000 Gain on disposal of equipment 7,000 Depreciation (39,000) Administrative and selling expenses (13,000) Operating Profit before Interest and taxes 137,000 Interest expenses (20,000) Profit before tax 117,000 Taxation (35,000) Profit after tax 82,000 Statement of financial position as at 31st December 2017 Non-current assets 2017 GHC 2016 GHC Vehicles at cost 195,000 130,000 Less: Accumulated depreciation (79,000) (52,000) 116,000 78,000 Investment 100,000 80,000 Current Assets Inventory…
Current Attempt in Progress Oriole Company had the following transactions during 2016: • Sales of $10080 on account • Collected $4480 for services to be performed in 2017 • Paid $4200 cash in salaries for 2016 • Purchased airline tickets for $560 in December for a trip to take place in 2017 What is Oriole's 2016 net income using a crual accounting? O $5880 O $10360 O $6440 O $10920 esc %23 $4 % 21 4. 5 d f
David and Roger Ltd is an expanding public company selling a variety of products (only on credit). Simplified income statements and balance sheets for the past 2 years, together with other selected information about the company, are provided below. Balance sheet of David and Roger Ltd 30 June 2017 30 June 2016 $’000 $’000 Current assets Cash 400 200 Accounts receivable 2 500 1 300 Inventory 1 150 750 Total current assets 4 050 2 250…
The following Income Statement information has been obtained from the books of Unlimited Liquors Corporation for the year ended March 31, 2022. The Income tax rate is 40% and the company has 50,000 shares of common stock outstanding. Sales Revenue $890,000 Cost of Goods sold 300,000 Operating expenses 220,000 Income from discontinued operations 140,000 Loss on disposal of discontinued operations 60,000 Calçulate the Net income of the company:
The following information has been taken from the Ledger of Numan Corporation for the year ended on June 30, 2015. Stock of material, June 30 2015 Rs. 15,700 Stock of materials, July 1, 2014 12,000 Material purchased during the year 46,250 Carriage outward 1,075 Carriage inward 1,786 Salaries – Factory 1,625 Salaries – Office 3,150 Discount Expenses 725 Bad debts written off 1,628 Repairs of plant, machineries and tools 1,113 Rent and insurance – Factory 2,125 Rent and insurance – Office 500 Sales 115,275 Travelling Expenses 525 Traveler’s salaries and commission 1,925 Productive wages 31,500 Depreciation of machinery and tools 1,625 Depreciation of office furniture 75 Director’s fees 1,500 Gas, and water – Factory 300 Gas and water – Office 100 Manager’s salary (3/4th factory, 1/4th office) 2,500 General Expenses 850 Calculate Factory Cost…
answer in text form please (without image)
Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) September 2, 2018 Total revenue $141,576 Operating expenses Merchandise costs 123,152 Selling, general and administrative 13,876 Preopening expenses 68 Operating Income 4,480 Other income (expense) Interest expense 159 Interest income and other, net (121) Income before income taxes 4,442 Provision for income taxes 1,263 Net income including noncontrolling interests 3,179 Net income attributable to noncontrolling interests (45) Net income attributable to Costco $3,134 Costco Wholesale Corporation Consolidated Balance Sheets ($ millions, except par value and share data) September 2, 2018 September 3, 2017 Current assets Cash and cash equivalents $6,055 $4,546 Short-term investments 1,204 1,233 Receivables, net 1,669 1,432 Merchandise…