Blyth Traders are a well-established wholesale business operating in the north of Englandand south Scotland. Their trial balance for year ended 31st December 2021 is presentedbelow:Dr [£]Cr [£]Non-current assets (cost):Plant and machinery150,000Vehicles100,000Premises600,000Accumulated depreciation (1-1-21):Plant and equipment90,000Vehicles50,000Premises96,000Sales829,000Sales returns2,000Purchases335,000Carriage inWages and salariesDiscounts allowed15,000114,0004,500Electricity costsVehicle maintenance37,5002,5008,000Advertising and marketing14,000Irrecoverable debts3,000Allowance for receivables1,500Bank19,200Accounts payable31,600Accounts receivable60,000Inventory (1-1-21)DrawingsBank loan [10%]Capital (1-1-21)91,70060,000150.000324,9001,594,7001,594,700Additional notes:1) Inventory at 31st December 2021 was valued at £94,000. However, on 4thJanuary 2022 additional lines of inventory were uncovered that had not beenincluded in the previous count. At cost this inventory would be valued at £5,000but 50% of the items were damaged and would probably fetch £500 at auction.Auction fees would be £100.2) Salary bill for Blyth is £10,000 per month.3) The electricity charge represents 15 months payment to 1st March 2022.4) Blyth pays a local garage £800 per month for maintenance and fuel costs. Arrearsto be settled by the end of the first week in 2022.5) The contract for advertising is with a newly established local company and Blythhas supported the company by settling the contract from 1st January 2021 up tothe end of April 2022.6) Blyth decides at the end of 2021 to double the allowance on receivables.7) Blyth disposed of an item of plant in 2021 for £8,000. The plant had beenpurchased in 2018 at a cost of £40,000 (Blyth charges no depreciation in year ofdisposal). This transaction has not yet been recorded in the books of Blyth.8) Depreciation rates are:Premises, straight line over 50 yearsPlant, 20% straight lineVehicles, 50% reducing balance Required:(a)Prepare a statement of profit or loss for y/e 31st December 2021 and astatement of financial position as at that date.

Profit and Loss Account The purpose preparing the income statement to know the actual net income of…

Blyth Traders are a well-established wholesale business operating in the north of England and south Scotland. Their trial balance for year ended 31st December 2021 is presented below: Dr [£] Cr [£] Non-current assets (cost): Plant and machinery 150,000 Vehicles 100,000 Premises 600,000 Accumulated depreciation (1-1-21): Plant and equipment 90,000 Vehicles 50,000 Premises 96,000 Sales 829,000 Sales returns 2,000 Purchases 335,000 Carriage in 15,000

Blyth Traders are a well-established wholesale business operating in the north of England and south Scotland. Their trial balance for year ended 31st December 2021 is presented below: Dr [£] Cr [£] Non-current assets (cost): Plant and machinery 150,000 Vehicles 100,000 Premises 600,000 Accumulated depreciation (1-1-21): Plant and equipment 90,000 Vehicles 50,000 Premises 96,000 Sales 829,000 Sales returns 2,000 Purchases 335,000 Carriage in 15,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 6MCQ: Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense...

See similar textbooks

Similar questions

Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000
The following trial balance was extracted from the ledger of Juliana at 31 December 2020. Juliana Trial Balance as at 31 December 2020 RM RMLand at cost 26,000Plant at cost 83,000 Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020Office Equipment 8,000Receivables 198,000Payables 52,000Sales 763,000Purchases…
Hayday PLC. Trial Balance as at 31st December 2021 is shown below: £s Revenue Administrative expenses 237,150 175,200 Selling and Distribution expenses Legal and Professional expenses Allowance for receivables - 31/12/2021 81,150 276,750 Inventories - finished goods -31/12/20 Work in Progress 31/12/20 49,123 Inventories - Raw materials at cost 31/12/20 162,600 Purchases - Raw materials 1,501,062 Carriage inwards - raw materials 15,570 Manufacturing wages 187,500 Ordinary shares issued 900,000 of £0.50 8.4% cumulative preference shares 150,000 of £1 each Revaluation surplus Share premium General reserve Retained earnings 31/12/20 Patents and trademarks Freehold property at cost Leasehold property at cost Amortisation of leasehold property - 31/12/20 Plant & Equipment at cost Accumulated depreciation - plant and equipment - 31/12/20 Furniture & Fittings at Cost Accumulated depreciation - furniture & fittings 31/12/20 Motor Vehicles at cost Accumulated depreciation - motor vehicles…
The following trial balance relates to Golden Ltd at 30th September 2018GHS'000GHS'000Sales (a)760,000Material purchases (b) 128,000Production labour (b) 248,000Factory overheads (b) 160,000Distribution costs 28,400Administrative expenses (c) 92,800Finance costs 700Investment income1,600Leased property - at cost (b) 100,000Plant and equipment - at cost (b) 89,000Accumulated amortisation/depreciation at 1/10/2017- leased property20,000- plant and equipment29,000Equity investments (e) 36,000Inventory at 1/10/17 93,400Trade receivables 67,100Trade payables55,600Bank4,600Stated capital (GHS0.2)100,000Income surplus (1/10/2017)67,200Deferred tax (f)5,4001,043,4001,043,400The following notes are relevant:(a) Sales include goods sold and dispatched in September 2018 on a 30-day right of return basis. Their sellingprice was GHS4.8m and they were sold at a gross profit margin of 25%. In the past, Golden Ltd’scustomers have always met their obligations under this type of agreement.(b)…
The following trial balance was extracted from the ledger of Juliana at 31 December 2020.JulianaTrial Balance as at 31 December 2020RMRMLand at cost26,000Plant at cost83,000Accumulated Depreciation at 1 January 2020- Plant13,000Office Equipment33,000Accumulated Depreciation at 1 January 2020Office Equipment8,000Receivables198,000Payables52,000Sales763,000Purchases516,000Returns inwards47,000Discount allowed4,000Capital at 1st January 2020230,000Drawings14,000Provision for doubtful debts at 1 January 202023,000Salaries Expense44,000Administration costs38,000Bank75,000Bad debts written off77,000Inventory at 1 January 202084,0001,164,0001,164,000Additional information: Closing inventory is RM74,000. Depreciation on plant is charged at 10% per annum on cost. Depreciation on office equipment is charged at 20% per annum using the reducing balance method. Administration costs include insurance prepaid of RM3,000. Salary accrued amount to RM2,000. The allowance for receivables is to…
ENGEN acquired the following assets. Financial Year: 31 December 2019.1. Motor vehicle $ 100 000 acquired on 30 June 2015 Custom clearance cost N$ 8 500Transport cost from Walvis Bay to Windhoek $ 10 000Vehicle registration cost N$ 1 500Depreciation: 4 years’ straight lineScrap value $ 2 000 2. Furniture and FittingsN$ 150 000 acquired on 01 January 2015Depreciation: 20% diminishing balanceN$ 49 152 residual value a)Calculate depreciation each year for both assets? Show each year depreciation expense and accumulated depreciation.
Subject:- Account On 1 January 2019 the carrying value of equipment was R19 720 (cost price, R25 670 and accumulated depreciation, R5 950). On 1 January 2019 equipment costing R5 670 was purchased (not included in the R25 670). The depreciation policy is to provide for depreciation, on all equipment held at year-end, at 25% per annum on the diminishing-balance method. Prepare the PPE note..
Ballet Pte Ltd acquired the following items of plant and Machinery, all from GST registered traders except paper shredder, which was purchased from a non registered trader for the quarter ended 31 March 2020. Description Cost (inclusive of 7% GST) Canon Printer $3,959 Paper Shredder $2,880 Boutique table $984.40 Machinery $11,877 Ballet Pte Ltd will claim its capital allowance to the maximum. Assuming the financial year ends on 30 June every year, determine the maximum capital allowance which can be claimed for the year of Assessment 2021 (to the nearest dollar). Assume paper shredder claimed by S19A, and Canon printer is not claimed under S19A. a. $6,567 b. $6,200 c. $4,967 d. $8,667
Required information [The following information applies to the questions displayed below.] The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Balance Sheets 2019 2018 Plant assets Equipment Accumulated depreciation-Equipment $ 180,000 (100,e00) $ 80,000 $ 380,000 (100,000) $ 280,000 $ 270,000 (210,000) $ 60,000 $ 400,000 (285,000) $ 115,000 Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net During 2019, a building with a book lue of $70,000 and an original cost of $300,000 was sold at a gain of $60,000. 1. How much cash did Anders receive from the sale of the building? 2 How much denreciation evnense was recorded on buildinas during 20192 ... Chat
9. These are the books of Riya Distributers as at 28 February 2021. Equipment R20 000, Accumulated Depreciation R16 000. Depreciation is calculated at 20% p. a. on a diminishing method. An old equipment was disposed for R1 500 cash on 1 December 2020. The equipment originally costed R3 000. The Accumulated depreciation is R 700. The depreciation for the disposed equipment is A.R460 B.R345 C.R225 D.R92 10. These are the books of Riya Distributers as at 28 February 2021. Equipment R20 000, Accumulated Depreciation R16 000. Depreciation is calculated at 20% p. a. on a diminishing method. An old equipment was disposed for R1 500 cash on 1 December 2020. The equipment originally costed R3 000. The Accumulated depreciation is R 700. The profitloss for the disposed equipment is A.Profitloss R300 B.Profit/loss R92 C.Profit/loss R455 D.Profit/loss R460
i) Company X Financial Year ends March 31. A laptop purchased 02 August 2018 at a cost of P9,500 was disposed off in January 2020 for P6800. Assuming the organisation follows local GAAPS on depreciation, provide the Journal Entries for this transaction. Outline all assumptions used. (ii) The following in being considered: Purchase of an office building worth P1M from unrestricted funding. Currently, the office building is on a 2-year lease, with rentals of BWP22,000 per month. 11 Provide your recommendations to the Finance Manager. What would be the possible effect on the Financial Health of the organisation if these transactions are approved (iii) List any key financial controls for an NGO and why these are important. (iv) Company X’s year-end is March 31. It is now April 4. A staff member asks you to process an unpaid invoice with details as follows: The invoice is for bus transportation in the amount of P800 and is dated April 2. The invoice indicates the charges relate to…
A financial analyst is analyzing the amortization of a product patent acquired by MAKETTIS.p.A., an Italian corporation. He gathers the following information about the patent:Acquisition cost €5,800,000Acquisition date 1 January 2009Patent expiration date 31 December 2015Total plant capacity of patented product 40,000 units per yearProduction of patented product in fi scal year ended 31 December 2009 20,000 unitsExpected production of patented product during life of the patent 175,000 unitsIf the analyst uses the units-of-production method, the amortization expense on the patent for fiscal year 2009 is closest to:A. €414,286.B. €662,857.C. €828,571.