Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part 2 (40 marks) Singapore Ltd uses the single statement format for the statement of profit or loss and Singapore Ltd, has been manufacturing and

image text in transcribedimage text in transcribed
Part 2 (40 marks) Singapore Ltd uses the single statement format for the statement of profit or loss and Singapore Ltd, has been manufacturing and selling kid's toys for the last two years. The other comprehensive income and classifies expenses by function within the statement.~ company commenced its operations on 1 July 2018 by issuing 350 000, $5 shares fully paid. There was no other cost related to the share issue. ~ Summarised account balances are provided below.~ For the year ending 30 June 2020, the company recorded the following aggregate transactions: Year-end balances, 30 June 2020- Accounts Cash on Hands 22 000 Sales (90 % credit and 10 % cash sales) 6 395 000 Bank 450 000 Cost of sales 4 419 000 Bank Overdraft 86 000 Interest income 5 000- Trade receivable 969 000 Rent revenue 8 000- Allowance for doubtful debts 2 000 Gain on sale of plante 2 000 Other receivables Employee benefit expenses - Admin 100 000 70 000 Inventories Utilities expenses (1/3 selling & 2/3 admin)+ 36 000 900 000 Prepaid insurance 2 000 Depreciation & amortisation expense- Admin 54 000 Selling & Distribution Expenses 32 000 Financial assets held for trading 215 000 Insurance expense - Admin 58 000 Plant and equipment 1 350 000 Doubtful debts expense 7 000 Accumulated depreciation - plant and equipment ] 495 000 Interest expense 30 000 Land 416 000 Other borrowing expenses 12 000 Buildings 132 000 Income tax expense 268 000- Accumulated depreciation - buildings 40 000 Patents 16 000 The following additional information was noted during the preparation of financial statements Accumulated amortisation of patent 5 000 for the year ended 30 June 2020:4 Furniture 33 0004- Accumulated depreciation - furniture 10 000 * Additional 80 000 @ $5 fully paid shares were issued on 1 July 2019.~ Goodwill Trade payable 10 000 A cash dividend of $180 000 was declared and paid during the 2020 financial year 535 000 and a final dividend for 2020 of $75 000 was proposed but not recognised in the Provision for employee benefits 88 000 financial statements.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making

Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell

9th Edition

1119754054, 9781119754053

More Books

Students also viewed these Accounting questions

Question

The feeling of boredom.

Answered: 1 week ago