- Cr Dr 800 000 250 000 40 000 100 000 110 000 65 000 30 000 30 000 200 000 200 000 50 000 Detalls Premises 10 Mortgage 1 (153.3 KiB) Viewed 45 times
The following balances were received from the books of Maxiss Car Park Ltd. as at December 31, 2015. Please see below for the Notes.
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- Cr Dr 800 000 250 000 40 000 100 000 110 000 65 000 30 000 30 000 200 000 200 000 50 000 Detalls Premises 10 Mortgage 2 (166.92 KiB) Viewed 45 times
a. Provide for depreciation on motor vehicle at 5% on the reducing balance b. Insurance is prepaid by $4,000 while wages and salaries is owing by $20,000 c. The goodwill should be written down by 25% d. Transfer $25,000 from profits to the general reserves e. Corporation tax is estimated at $30,000 f. The following items of expense should be apportioned: Insurance Wages & salaries Management fees Depreciation charges Admin 50 70% 80% 50% Sell & Dist 50% 30% 20% 50% g. Prior to the end of the year the directors approved the following: • preference share dividends is to be accounted for in full • a new issue of 100,000 ordinary shares with par of $0.50 per share; amount collected was $75,000 Required: Prepare the following: o Statement of profit and loss o Statement of changes in equity o Statement of financial position Show appropriate workings and disclosures