The following balances were obtained from the books of The Hartland Ltd as at December 31, 2015: DETAILS DR CR Premises 800,000 10% Mortgage Retained earnings 250,000 Goodwill Debtors 40,000 100,000 110,000 Creditors General reserves 65,000 30,000 Management fees Ordinary shares @ $0.50 | 5% Preference shares @ $1 Share premium |Motor vehicle Prov. for depreciation on motor vehicle 30,000 200,000 200,000 50,000 80,000 12,000 120,000 10% Debenture Mortgage interest Debenture interest 7,000 5,000 750,000 80,000 Cost of sales Closing stock Insurance 20,000 60,000 Wages & salaries Interim ordinary shares dividend Bank 2,000 53,000 1,100,000 4,000 2,084,000 Sales Commission received 2,084,000 Notes: a. Provide for depreciation on motor vehicle at 5% on the reducing balance b. Insurance is prepaid by $4,000 while wages and salaries is owing by $20,000 c. The goodwill should be written down by 25% d. Transfer $25,000 from profits to the general reserves e. Corporation tax is estimated at $30,000
The following balances were obtained from the books of The Hartland Ltd as at December 31, 2015: DETAILS DR CR Premises 800,000 10% Mortgage Retained earnings 250,000 Goodwill Debtors 40,000 100,000 110,000 Creditors General reserves 65,000 30,000 Management fees Ordinary shares @ $0.50 | 5% Preference shares @ $1 Share premium |Motor vehicle Prov. for depreciation on motor vehicle 30,000 200,000 200,000 50,000 80,000 12,000 120,000 10% Debenture Mortgage interest Debenture interest 7,000 5,000 750,000 80,000 Cost of sales Closing stock Insurance 20,000 60,000 Wages & salaries Interim ordinary shares dividend Bank 2,000 53,000 1,100,000 4,000 2,084,000 Sales Commission received 2,084,000 Notes: a. Provide for depreciation on motor vehicle at 5% on the reducing balance b. Insurance is prepaid by $4,000 while wages and salaries is owing by $20,000 c. The goodwill should be written down by 25% d. Transfer $25,000 from profits to the general reserves e. Corporation tax is estimated at $30,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![7:42 AM 5.7KB/s O G
all all
30
The following balances were obtained from the books of
The Hartland Ltd as at December 31, 2015:
DETAILS
DR
CR
Premises
800,000
10% Mortgage
Retained earnings
250,000
40,000
100,000
110,000
Goodwill
Debtors
Creditors
65,000
30,000
General reserves
Management fees
Ordinary shares @ $0.50
5% Preference shares @ $1
Share premium
Motor vehicle
Prov. for depreciation on motor vehicle
30,000
200,000
200,000
50,000
80.000
12,000
120,000
10% Debenture
Mortgage interest
Debenture interest
Cost of sales
Closing stock
7,000
5,000
750,000
80,000
20,000
60,000
Insurance
Wages & salaries
2,000
Interim ordinary shares dividend
Bank
53,000
1,100,000
4,000
2,084,000
Sales
Commission received
2,084,000
Notes:
a. Provide for depreciation on motor vehicle at 5% on the
reducing balance
b. Insurance is prepaid by $4,000 while wages and salaries is
owing by $20,000
c. The goodwill should be written down by 25%
d. Transfer $25,000 from profits to the general reserves
e. Corporation tax is estimated at $30,000
Chegg
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The following balances were
obtained from the books ...
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Transcribed Image Text:7:42 AM 5.7KB/s O G
all all
30
The following balances were obtained from the books of
The Hartland Ltd as at December 31, 2015:
DETAILS
DR
CR
Premises
800,000
10% Mortgage
Retained earnings
250,000
40,000
100,000
110,000
Goodwill
Debtors
Creditors
65,000
30,000
General reserves
Management fees
Ordinary shares @ $0.50
5% Preference shares @ $1
Share premium
Motor vehicle
Prov. for depreciation on motor vehicle
30,000
200,000
200,000
50,000
80.000
12,000
120,000
10% Debenture
Mortgage interest
Debenture interest
Cost of sales
Closing stock
7,000
5,000
750,000
80,000
20,000
60,000
Insurance
Wages & salaries
2,000
Interim ordinary shares dividend
Bank
53,000
1,100,000
4,000
2,084,000
Sales
Commission received
2,084,000
Notes:
a. Provide for depreciation on motor vehicle at 5% on the
reducing balance
b. Insurance is prepaid by $4,000 while wages and salaries is
owing by $20,000
c. The goodwill should be written down by 25%
d. Transfer $25,000 from profits to the general reserves
e. Corporation tax is estimated at $30,000
Chegg
Visit
The following balances were
obtained from the books ...
Images may be subject to copyright. Learn More
米
Discover
Snapshot
Search
Collections
![8:21 AM 1.9KB/s M
23
The Following Bala.
chegg.com
f. The following items of expense should be apportioned:
Admin
Sell & Dist.
50%
70%
Insurance
50%
30%
|Wages & salaries
Management fees
Depreciation charges
80%
50%
20%
50%
g. Prior to the end of the year the directors approved the
following:
preference share dividends is to be accounted for in
full
a new issue of 100,000 ordinary shares with par of
$0.50 per share; amount collected was $75,000
Required:
Prepare the following:
o Statement of profit and loss
• Statement of changes in equity
o Statement of financial position
Show appropriate workings and disclosures
This question hasn't been answered yet
ASK FOR ANSWER](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7dc1f7c0-2735-40ed-833d-d7f84e31e026%2F31c91947-92ac-4b09-9424-96c7891ffdc2%2Flfetsql_processed.jpeg&w=3840&q=75)
Transcribed Image Text:8:21 AM 1.9KB/s M
23
The Following Bala.
chegg.com
f. The following items of expense should be apportioned:
Admin
Sell & Dist.
50%
70%
Insurance
50%
30%
|Wages & salaries
Management fees
Depreciation charges
80%
50%
20%
50%
g. Prior to the end of the year the directors approved the
following:
preference share dividends is to be accounted for in
full
a new issue of 100,000 ordinary shares with par of
$0.50 per share; amount collected was $75,000
Required:
Prepare the following:
o Statement of profit and loss
• Statement of changes in equity
o Statement of financial position
Show appropriate workings and disclosures
This question hasn't been answered yet
ASK FOR ANSWER
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