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answer me fast please The following trial balance was extracted from the books of D Larkin Ltd, a limited company, on the 31 December 2020:
answer me fast please
The following trial balance was extracted from the books of D Larkin Ltd, a limited company, on the 31 December 2020: D. Larkin Ltd Trial Balance as at 31/12/2020 share capital 100,000 retained earnings 31/12/2019 32,180 premises at cost 65,000 55,000 machinery at cost accumulated depreciation - machinery 15,800 purchases/ sales 201,698 316,810 wages and salaries 54,207 rent 4,300 light & heat 1,549 irrecoverable debts 748 general expenses 32,168 allowance for receivables 861 trade receivables 21,784 trade payables 17,493 inventory 31/12/2019 25,689 bank 23,101 returns 10,200 12,300 495,444 495,444 Additional information: 1. The authorised and issued share capital is divided into 100,000 shares at 1 each. 2. Inventory at 31/12/2020, 29,142. 3. Wages and salaries due at the 31/12/2020 amounted to 581. 4. Rent paid in advance at 31/12/2020 amounted to 300. 5. A dividend of 10,000 was proposed after year end. Question continued on next page...... Assessor: Fergal Lalor Question continued... 6. The allowance for receivables is to be increased to 938. 7. Provision for depreciation as follows: Machinery - 10% - reducing balance method. Premises -2% - on cost. 8. Corporation tax has been estimated at 5,000 You are required to prepare: a) The Income Statement for the year ended 31 December 2020. b) The Statement of Financial Position as at 31 December 2020. (7 marks)Step by Step Solution
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