Question
The trial balance of Red Excitement Ltd as at 30 June 2016 disclosed: $ $ Cash at bank 18,285 Petty cash 1,500 Accounts Receivable 51,385
The trial balance of Red Excitement Ltd as at 30 June 2016 disclosed:
| $ | $ |
Cash at bank | 18,285 |
|
Petty cash | 1,500 |
|
Accounts Receivable | 51,385 |
|
Inventory (at cost) | 48,500 |
|
Land & Buildings (at director's valuation 2014) | 785,000 |
|
Plant & Equipment (at cost) | 286,350 |
|
Investments (at market value) | 52,635 |
|
Goodwill (at cost) | 28,700 |
|
Trademarks (at cost) | 25,200 |
|
Deferred Tax asset | 6,900 |
|
Allowance for doubtful debts |
| 1,350 |
Accounts Payable |
| 24,910 |
Accrued Expenses |
| 4,655 |
Accumulated depreciation Buildings |
| 39,650 |
Accumulated depreciation - Plant & Equipment |
| 79,420 |
Accumulated impairment Goodwill |
| 11,700 |
Taxation Payable |
| 26,255 |
Deferred Tax liability |
| 3,100 |
Mortgage |
| 210,000 |
Provision for Long Service Leave |
| 13,600 |
General Reserve |
| 100,000 |
Asset Revaluation Reserve |
| 35,000 |
Share Capital |
| 650,000 |
Retained Earnings |
| 104,815 |
| 1,304,455 | 1,304,455 |
Additional information:
? Investments are shares in companies listed on the Australian Stock Exchange.
? The mortgage, secured by land & buildings, is due to be repaid in three equal instalments, due on 30 June each year.
? Land was revalued by the directors on 30 June 2016 to $420,000.
? Buildings were revalued by the directors on 30 June 2016 to $365,000.
? Long service leave payable within the next twelve months is $3,100.
Required:
( a ) Prepare the Statement Of Financial Position for Red Excitement Ltd as at 30 June 2016.
( b ) Prepare the notes for the Non-Current Assets and the Current Liabilities sections ONLY of the balance sheet.
Red Excitement Ltds Policy And Procedures Manual requires the use of the format/templates provided on the following pages.
NOTE: Prior year comparative figures are NOT required.
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