Prepare a Statement of Profit or Loss for the company for the year ended 31st December 2018.
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Prepare a Statement of Profit or Loss for the company for the year ended 31st December 2018.
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9. The following is the trial balance of Pebbles Limited at 31st December 2019. Dr Cr £ 000 £ 000 Accounts Payable 203 Accounts Receivable 406 Administration expenses 89 Bad debts 12 Cash and Bank 207 Commission 21 Dividend 108 Insurance 20 Interest 3 Inventory 226 Long term loan (8%) Motor vehicles - cost Motor vehicles - depreciation Plant and machinery - cost 75 668 308 1450 Plant and machinery depreciation 420 Proceeds from asset sale Proceeds from issue of shares 184 Provision for Doubtful Debts 4 Purchases 1887 Rent 24 Retained profit 836 Sales 3010 Selling expenses Share capital (par value £1.00) 124 200 5,245.0 5,245.0 NOTE i) The value of inventory at 31st December 2019 was £277,000. An invoice for Selling Expenses of £3,000 covering the period from the beginning of November 2019 to the end of January 2020 was received in January 2020. An invoice for Commission of £16,000 covering the period from the beginning of November 2019 to the end of February 2020 was received in October 2019. A debt of £6,000 is to be written off at the year end. The company decides that a provision for doubtful debts is needed of 1 percent. Plant and Equipment is depreciated on a Straight Line basis at 8% per annum. A motor vehicle originally costing £18,000 was sold for £5,000. During 2019 there were no other disposals of assets, and no non-current assets were bought. Vehicles are depreciated at 20% per year, with no depreciation charged in the year of disposal. Accumulated depreciation on Vehicles at 31 Dec 2019 was £422,000 There was an interim dividend paid of £39,000 (2018: £29,000) and a final dividend was proposed of £91,000 (2018: £69,000). 80,000 additional shares were issued at a premium of £1.30 per share. Tax for the year amounts to £ 95,000. ii) ii) iv) v) vi) vii) viii) ix) x) 9. The following is the trial balance of Pebbles Limited at 31st December 2019. Dr Cr £ 000 £ 000 Accounts Payable 203 Accounts Receivable 406 Administration expenses 89 Bad debts 12 Cash and Bank 207 Commission 21 Dividend 108 Insurance 20 Interest 3 Inventory 226 Long term loan (8%) Motor vehicles - cost Motor vehicles - depreciation Plant and machinery - cost 75 668 308 1450 Plant and machinery depreciation 420 Proceeds from asset sale Proceeds from issue of shares 184 Provision for Doubtful Debts 4 Purchases 1887 Rent 24 Retained profit 836 Sales 3010 Selling expenses Share capital (par value £1.00) 124 200 5,245.0 5,245.0 NOTE i) The value of inventory at 31st December 2019 was £277,000. An invoice for Selling Expenses of £3,000 covering the period from the beginning of November 2019 to the end of January 2020 was received in January 2020. An invoice for Commission of £16,000 covering the period from the beginning of November 2019 to the end of February 2020 was received in October 2019. A debt of £6,000 is to be written off at the year end. The company decides that a provision for doubtful debts is needed of 1 percent. Plant and Equipment is depreciated on a Straight Line basis at 8% per annum. A motor vehicle originally costing £18,000 was sold for £5,000. During 2019 there were no other disposals of assets, and no non-current assets were bought. Vehicles are depreciated at 20% per year, with no depreciation charged in the year of disposal. Accumulated depreciation on Vehicles at 31 Dec 2019 was £422,000 There was an interim dividend paid of £39,000 (2018: £29,000) and a final dividend was proposed of £91,000 (2018: £69,000). 80,000 additional shares were issued at a premium of £1.30 per share. Tax for the year amounts to £ 95,000. ii) ii) iv) v) vi) vii) viii) ix) x)
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Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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