tombe
Dec 16, 2007, 12:31 PM
I need to draw up a extended trial balance and am struggling with the extra information. These are a few of them:
•Spectrom plc’s authorized share capital is 1,000,000 ordinary shares at £1 each.
•Included in the issue share capital of £800,000 was a share issue of 160,000 ordinary shares on 1 April 2006 at par. The shares have a nominal value of $1 each and have been estimated to have a market value of 92p each.
•The leased plant and machinery refers to a finance lease taken out on 1 January 2006. It is a five year lease with five year annual instalment of £120,000 being made in advance. The only accounting (i.e. the amounts reflected in the trial balance) that has taken place so far for this asset is:
£’000
Dr Plant and Machinery 510,000
Cr Finance lease obligation 510,000
Dr Finance lease obligation 120,000
Cr Bank 120,000
Interest on the loan is to be worked out using the sum of digits method.
•Spectrom plc’s authorized share capital is 1,000,000 ordinary shares at £1 each.
•Included in the issue share capital of £800,000 was a share issue of 160,000 ordinary shares on 1 April 2006 at par. The shares have a nominal value of $1 each and have been estimated to have a market value of 92p each.
•The leased plant and machinery refers to a finance lease taken out on 1 January 2006. It is a five year lease with five year annual instalment of £120,000 being made in advance. The only accounting (i.e. the amounts reflected in the trial balance) that has taken place so far for this asset is:
£’000
Dr Plant and Machinery 510,000
Cr Finance lease obligation 510,000
Dr Finance lease obligation 120,000
Cr Bank 120,000
Interest on the loan is to be worked out using the sum of digits method.