Share premium Warehouse wages Question 5: Good Pens Limited is a famous stationary supplies company. This is their trial balance at 31 December 2016: Dr Cr Ordinary share capital: BD1 shares 1,250,000 150,000 General Reserve 60,000 Retained Profits as at 31.12.2015 174,690 Inventory: 31.12.2015 420,900 Revenue 6,362,963 Purchases 3,094,888 Returns outwards 151,525 Returns inwards 170,250 Carriage inwards 7,925 Carriage outwards 54,738 512,800 Salespeople's salaries 381,388 Administrative wages and salaries 346,488 Plant and machinery 762,500 Motor vehicle hire 105,963 Provisions for depreciation: plant and machinery 270,363 General distribution expenses 33,913 General administrative expenses 59,988 Directors remuneration 243,925 Ordinary dividend 468,750 Rents receivable 46,438 Trade accounts receivable 2,029,463 Cash in hand and bank 224,063 Trade accounts payable 380,713 Bills of exchange payable 71,250 8,917,942 8,917,942 Following additional information is also available: Inventory at 31.12.2016 is 412,780 b. Plant and machinery at cost is apportioned: i distributive 60% ii. administrative 40% Accrue auditors remuneration: 69,000 d. Depreciate plant and machinery: 20% on cost of the motor hire, 65,000 is for distributive purposes f. Corporation tax on profits is estimated at 238,500 and is payable in 2017. Required: Prepare a profit and Logs statement for the year ending 31 December 2016 and a Statement of Financial Position as at that date. You are required to show all your workings in detail. (25 marks) c. e