Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
please answer it ASAP. it is VERY Rush. Thank you very much ECOS1081 INTRODUCTION TO FINANCIAL ACCOUNTING - SEMINAR 7 Glasgow Ltd is a retail
please answer it ASAP. it is VERY Rush. Thank you very much
ECOS1081 INTRODUCTION TO FINANCIAL ACCOUNTING - SEMINAR 7 Glasgow Ltd is a retail dealer in motor-parts. Its draft accounts for the year ended 30 April 2012 were as follows: Income Statement for the year ended 30 April 2012 Sales 745,150 Add: Income from investments 3002000 1,045,15O Less: Purchases 195,000 Bank interest 40,200 Depreciation 92,000 Administrative expenses 64,100 Advertising 16,000 Wages 140,000 Corporation tax provision 462300 (5932600) Profit 451,550 Balance Sheet at 30 April 2012 Freehold land and buildings 1,633,500 Plant and machinery 577,500 Inventory at 30.4.11 396,000 Customers' accounts 517,000 Bank 209,000 Loan repayable 2015 (495,000) Suppliers' accounts (401,400) Tax liability (46,300) 2390300 Issued share capital (1 ordinary shares) 1,320,000 Retained earnings 1,070,300 2:390,300 You have been assigned the task of preparing the company's final accounts. The bookkeeper gives you the following information: i) The income from investments comprises the moneys received from a new issue of 1 ordinary shares by the company at a price of 1 .60. ii) The directors wish to show the land and buildings at their open market value of 3m at 30 April 2011. They are currently stated at historical cost. Sixty per cent of the value relates to land and forty per cent to buildings. The buildings are currently being depreciated at 26,100 a year on a straight line basis. The directors estimate their remaining useful life at 30 April 2011 at thirty years.20f2 iii) The cost of inventory at 30 April 2012 amounted to 420,000. However, this includes motor parts dating from 1956 with a cost of 6,400 that are now obsolete. The company will be able to sell these to a motor museum for 850 less transportation costs of 300. Reguired: Prepare an income statement, balance sheet, comprehensive income statement, and statement of changes in equity in a form suitable for presentation to the shareholdersStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started