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Consider the following data being taken out of the Trial Balance of FB Ltd. as at 31 Dec., 2017: Dr Cr Ordinary shares of $5
Consider the following data being taken out of the Trial Balance of FB Ltd. as at 31 Dec., 2017: Dr Cr Ordinary shares of $5 each 620,000 Preference shares of $1 each 250,000 8% debentures 210,000 General reserve 120,000 Retained profits 115,324 Machinery at cost 595,000 Fixture at cost 346.000 Accumulated depreciation - Machinery 158,000 Accumulated depreciation - Fixture 98,400 Stock at 1 January 2017 193,720 Accounts Receivable 420,600 Accounts Payable 99,940 Cash at bank 266.605 Purchases 248,880 Sales 660,280 Administrative expenses 23,750 General expenses 35,605 Directors' remuneration 60,364 Distribution costs 70,800 Debenture interest 8.400 12,400 Interim dividend paid - Ordinary shares 4/9 The following additional information relating to FB Ltd. is also available: 1. Stock at 31 December 2017 was valued at $160.200. 2. Fixture costing $33,600, for which $28,080 depreciation had been provided, was sold for $7,560 during the year. This transaction has not been recorded because the proceeds of sale has not yet been received at year end. 3. There was no purchase of fixed assets during the year. Depreciation on machinery and fixture are provided on straight-line basis on cost at the rate of 10% p.a. and 5% p.a. respectively. 4. Accrued distribution costs amount of $6,850 and prepaid for other expenses $8,870 were incurred in the year. 5. The estimated tax expenses for the year amounting to $22,220. 6. The directors have decided to increase the general reserve up to $135,000 in total. REQUIRED: Prepare a Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2017, a Statement of Changes in Equity and a Statement of Financial Position as at that date. (Show all workings and calculation as marks will be given accordingly) (Total 36 marks) 4/9 Consider the following data being taken out of the Trial Balance of FB Ltd. as at 31 Dec., 2017: Dr Cr Ordinary shares of $5 each 620,000 Preference shares of $1 each 250,000 8% debentures 210,000 General reserve 120,000 Retained profits 115,324 Machinery at cost 595,000 Fixture at cost 346.000 Accumulated depreciation - Machinery 158,000 Accumulated depreciation - Fixture 98,400 Stock at 1 January 2017 193,720 Accounts Receivable 420,600 Accounts Payable 99,940 Cash at bank 266.605 Purchases 248,880 Sales 660,280 Administrative expenses 23,750 General expenses 35,605 Directors' remuneration 60,364 Distribution costs 70,800 Debenture interest 8.400 12,400 Interim dividend paid - Ordinary shares 4/9 The following additional information relating to FB Ltd. is also available: 1. Stock at 31 December 2017 was valued at $160.200. 2. Fixture costing $33,600, for which $28,080 depreciation had been provided, was sold for $7,560 during the year. This transaction has not been recorded because the proceeds of sale has not yet been received at year end. 3. There was no purchase of fixed assets during the year. Depreciation on machinery and fixture are provided on straight-line basis on cost at the rate of 10% p.a. and 5% p.a. respectively. 4. Accrued distribution costs amount of $6,850 and prepaid for other expenses $8,870 were incurred in the year. 5. The estimated tax expenses for the year amounting to $22,220. 6. The directors have decided to increase the general reserve up to $135,000 in total. REQUIRED: Prepare a Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2017, a Statement of Changes in Equity and a Statement of Financial Position as at that date. (Show all workings and calculation as marks will be given accordingly) (Total 36 marks) 4/9
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