Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The ledger balances at 30 September 2021 extracted from the books of Hodgson Limited are as follows: Debit Credit $'000 $'000 Revenue 231,822 Inventories
The ledger balances at 30 September 2021 extracted from the books of Hodgson Limited are as follows: Debit Credit $'000 $'000 Revenue 231,822 Inventories 33,880 Cost of sales 148,391 Selling and distribution costs 15,022 Administrative expenses 7,441 Other income-investment income 6,000 Finance Costs 6,086 Interim dividend paid 400 Income tax expense 7,923 Restructuring expenses 1,881 Depreciation expenses Banking borrowings 2,823 80,000 Trade and other receivables 37,558 Cash and cash equivalents 37,253 Intangible assets 31,328 Freehold land 45,000 Property, plant and equipment, at cost 278,860 Accumulated depreciation 81,022 Property, plant and equipment Available-for-sale financial assets 22,264 Disposal of land 33,000 Retained earnings, 1 October 2020 Share Capital Short-term borrowings Trade and other payables Current tax payable 138,594 32,000 46,043 19,229 8,400 Additional information: (1) In May 2021, Hodgson Limited recognized "Revenue" of a credit sale transaction amounting to $20,000,000 sold to Grey Limited. The sales contract states that Grey Limited has the right to return the goods within one year from the date of sales. The goods were returned by Grey Limited
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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