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Please show the T-accounts for working! show working please!!! prepare financial statement and income statement Advanced-level exercises 4.6 The following is a draft set of
Please show the T-accounts for working! show working please!!! prepare financial statement and income statement
Advanced-level exercises 4.6 The following is a draft set of simplified financial statements for Pear Limited for the year ended 30 September 2018: Income statement for the year ended 30 September 2018 000 Revenue 1,456 Cost of sales (768) Gross profit 688 Salaries (220) Depreciation Other operating costs (131) Operating profit 88 Interest payable (15) Profit before taxation 73 Taxation at 30% (22) Profit for the year 51 (249) Statement of financial position as at 30 September 2018 000 ASSETS Non-current assets Property, plant and equipment Cost 1,570 Depreciation (690 880 Current assets Inventories 207 Trade receivables 182 Cash at bank 21 410 Total assets 1,290 EXERCISES 155 000 EQUITY AND LIABILITIES Equity Share capital Share premium account Retained earnings at beginning of year Profit for year 300 300 104 51 755 300 Non-current liabilities Borrowings (10% loan notes repayable 2020) Current liabilities Trade payables Other payables Taxation Borrowings (bank overdraft) 88 20 22 105 235 1,290 Total equity and liabilities The following information is available: 1 Depreciation has not been charged on office equipment with a carrying amount of 100,000. This class of assets is depreciated at 12 per cent a year using the reducing- balance method. 2 A new machine was purchased, on credit, for 30,000 and delivered on 29 September 2018 but has not been included in the financial statements. (Ignore depreciation.) 3 A sales invoice to the value of 18,000 for September 2018 has been omitted from the financial statements. (The cost of sales figure is stated correctly.) 4 A dividend of 25,000 had been approved by the shareholders before 30 September 2018, but was unpaid at that date. This is not reflected in the financial statements. 5 The interest payable on the loan notes for the second half-year was not paid until 1 October 2018 and has not been included in the financial statements. 6 An allowance for trade receivables is to be made at the level of 2 per cent of trade receivables. 7 An invoice for electricity to the value of 2,000 for the quarter ended 30 September 2018 arrived on 4 October 2018 and has not been included in the financial statements. 8 The charge for taxation will have to be revised to take account of any amendments to the taxable profit arising from items 1 to 7. Make the simplifying assumption that tax is payable shortly after the end of the year, at the rate of 30 per cent of the profit before tax Required: Prepare a revised set of financial statements for the year ended 30 September 2018 incor- porating the additional information in 1 to 8 above. (Work to the nearest 1,000.)Step by Step Solution
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