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. It has been decided to increase the provision for doubtful debts by 10%. Based on the current year's results, corporation tax was estimated at

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. It has been decided to increase the provision for doubtful debts by 10%. Based on the current year's results, corporation tax was estimated at 360,000 and is to be provided for. The following expenses, due at 31 May 2009, have not been recorded: - Audit fees 150,960 Business rates paid in advance at 31 May 2009 was 5,000. Interest of 3,000 relating to the company's overdraft had been charged to selling and distribution costs. Insurance and pensions costs are shared equally between selling & distribution expenses and administration expenses. Bad debts and related provisions are treated as selling & distribution costs. The bank loan has three more years to run. One third is repayable on 1st September 2009, with the balance payable in September 2012 On 1 March 2009 the company issued 600,000 shares at a premium of 90 pence each. At the financial year end, these new shares were fully paid up and allotted by the company The company paid interim dividends of 0.025 per share on 1 December 2008. It was agreed at the AGM in February 2009, that these dividends would be treated as final. The auditors discovered that the dividend payment was correctly recorded in the cash book, but had not been posted to the dividends payment account. Due to the increasing share price of Hartley Plc currently being traded, the company decided to do a 2:1 Bonus issue at 1 April 2009. REQUIRED: (a) Construct a table showing the total of each individual expense and then detailing the division of expenses between the three headings of administrative expenses, selling & distribution expenses and finance expenses. Assume that all expenses are administrative expenses unless clearly either selling & distribution expenses or finance expenses, or stated as such. (b) Prepare in good form a statement of profit or loss for Hartley Plc for the period ending at 31 May 2009 (c) Prepare in good form a statement of changes in equity for Hartley Plc for the period ending at 31 May 2009 (d) Prepare in good form a statement of financial position for Hartley Plc as at 31 May 2009 . It has been decided to increase the provision for doubtful debts by 10%. Based on the current year's results, corporation tax was estimated at 360,000 and is to be provided for. The following expenses, due at 31 May 2009, have not been recorded: - Audit fees 150,960 Business rates paid in advance at 31 May 2009 was 5,000. Interest of 3,000 relating to the company's overdraft had been charged to selling and distribution costs. Insurance and pensions costs are shared equally between selling & distribution expenses and administration expenses. Bad debts and related provisions are treated as selling & distribution costs. The bank loan has three more years to run. One third is repayable on 1st September 2009, with the balance payable in September 2012 On 1 March 2009 the company issued 600,000 shares at a premium of 90 pence each. At the financial year end, these new shares were fully paid up and allotted by the company The company paid interim dividends of 0.025 per share on 1 December 2008. It was agreed at the AGM in February 2009, that these dividends would be treated as final. The auditors discovered that the dividend payment was correctly recorded in the cash book, but had not been posted to the dividends payment account. Due to the increasing share price of Hartley Plc currently being traded, the company decided to do a 2:1 Bonus issue at 1 April 2009. REQUIRED: (a) Construct a table showing the total of each individual expense and then detailing the division of expenses between the three headings of administrative expenses, selling & distribution expenses and finance expenses. Assume that all expenses are administrative expenses unless clearly either selling & distribution expenses or finance expenses, or stated as such. (b) Prepare in good form a statement of profit or loss for Hartley Plc for the period ending at 31 May 2009 (c) Prepare in good form a statement of changes in equity for Hartley Plc for the period ending at 31 May 2009 (d) Prepare in good form a statement of financial position for Hartley Plc as at 31 May 2009

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