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
Related questions
Question
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 2 steps with 3 images
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