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  • Oct 2, 2011, 12:57 PM
    Jameille
    Accounting
    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
  • Oct 2, 2011, 11:59 PM
    Unknown008
    Except there is no attachment that I can see =/
  • Oct 4, 2011, 06:14 PM
    Jameille
    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
  • Oct 4, 2011, 06:17 PM
    Jameille
    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

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