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I need help with the adjusted trial balance of this question. Thanks :) Question 2 Neon Lights Inc. sells lighting equipment to retail outlets and
I need help with the adjusted trial balance of this question. Thanks :)
Question 2 Neon Lights Inc. sells lighting equipment to retail outlets and the following trial balance has been prepared as at 30 April 2002: 000 000 2,000 5,300 1,060 2,400 960 700 1,740 88 Freehold land at cost Buildings: cost Provision for depreciation at 1 May 2001 Fittings and fixtures: cost Provision for depreciation at 1 May 2001 Inventory at 1 May 2001 Trade Receivable Provision for doubtful debts Bank Trade Payable Share Capital 7% Loan, Due 2004 Retained profit at 1 May 2001 Sales Purchases Salaries and wages Light and power Insurance Administration and distribution expenses Dividends Sale of fixed asset account 365 1,100 2,700 4,000 195 13,500 9.500 1,690 210 68 390 150 180 24,148 24,148 The following additional information is supplied: (1) During the year fittings and fixtures which had cost 230,000, and on which depreciation of 69,000 had been provided at 1 May 2001, were sold the proceeds being credited to the sale of fixed asset account appearing in the trial balance. No depreciation is charged on non-current assets in the year of sale. (2) Depreciation is to be provided on Non-current assets at the following rates: Buildings 2% using the strain 2% using the straight-line method 10% on a reducing balance basis ings and fixtures (3) Inventory was counted on 30 April 2002 and valued at 1,200,000 using the company's normal mark-up of 50 % on cost. (4) The charge for insurance includes a premium of 24,000 for the year to 31 August 2002. (5) A debt of 150,000 is considered to be irrecoverable and is to be written off. The provision for doubtful debts is to be adjusted to 3.5% of the remaining trade Accounts Receivables. (6) The loan interest for the year to 30 April 2002 is to be provided for. (7) Wages of 25,000 remain unpaid at year-end. (8) On the 29 of April 2002, the company storekeeper notified the supplier of a shipment of Inventory for 3,000 received on the 28 April 2002 that was found to be damaged. The inventory were subsequently returned on the 5th of May 2002. Required: An Income statement for the year-ended 30 April 2002 and a Statement of Financial Position as at dateStep by Step Solution
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