Jameille
Oct 2, 2011, 12:57 PM
Hello... I'm here practicing for my mid-semester exam and I just can't get this question to balance. Can someone please help me?
I've uploaded an attachment and I'm having problems with question three (3). Please help me
Unknown008
Oct 2, 2011, 11:59 PM
Except there is no attachment that I can see =/
Jameille
Oct 4, 2011, 06:14 PM
Oh sorry that... its saying error. Anyway here is the question:
Balances on Dec 31, 2006:
$
Ordinary Share Capital 200,000
Revaluation Reserve 37,500
General reserves 20,000
Retained profits 1/1/2006 85,000
Long term Loan 200,000
Cost of Sales 750,000
Sales 1,305,000
Other Operating Income 20,000
Distributions Costs 145,800
Administrative Costs 274,200
Other Operating Costs 60,000
Interest on loan 20,000
Furniture 512,500
Allowance for Depreciation on Furniture 50,000
Closing Stock 30,000
Trade debtors 60,000
Bank 90,000
Trade Creditors 20,000
Rent Accrued 5,000
Addition Information:
1. Ordinary dividends amounting to $30,000 was paid in Dec. 2006, but this dividend is not yet refletcted in the 2006 accounts.
2. Transfer $10,000 to general reserves.
3. Corporation tax is estimated at $12,800 for the 2006 financial year.
4. $50,000 of the long term loan will be paid on December 31, 2007.
5. The weighted average number of ordinary shares in issue during 2006 was 200,000
Required:
Prepare the income statement, statement of changes in equity and balance sheet
Jameille
Oct 4, 2011, 06:17 PM
For my income statement I got $1,557,200. I'm not sure what to do with the Revaluation Reserves in the statement of changes in equity and because of that I can't get the balance sheet to balance