The trial balance below is for RP plc for the y/e 31/12/2021 [in £000s] Purchases and Sales Inventory 1/1/2021 Receivables and payables Selling & distribution expenses Rent, rates and insurance Staff salaries Advertising Gas & electricity Audit fee Bad debt Directors' remuneration Debenture interest Interest on bank loan Cash Bank Premises at cost Equipment at cost Equipment-accumulated depreciation Furniture & fittings at cost Furniture & fittings-accumulated depreciation £1 Ordinary share capital 7% Long term bank loan 11% Debentures Share premium Retained profits Interim ordinary dividend Totals Additional information as at 31/12/2021: Inventory was valued at £90,000. 650 Required: a) Income Statement for the year ended 31/12/2021. b) Statement of Financial Position as at 31/12/2021. 8639822-12- 100 100 4 9 600 130 100 20 2000 1100 70 30 60 350 100 100 120 70 2000 Page 3 of 7 • Prepayments for: Insurance £5000; distribution expenses £4000; • Accruals for: Rates £1000; Gas & electricity £2000; Audit fee £1000 • The equipment to be depreciated by 20% on reducing balance • The furniture & fittings to be depreciated by 20% on straight line. • The directors wish to provide £25,000 for taxation. The directors propose a final ordinary dividend of 8p per share.
The trial balance below is for RP plc for the y/e 31/12/2021 [in £000s] Purchases and Sales Inventory 1/1/2021 Receivables and payables Selling & distribution expenses Rent, rates and insurance Staff salaries Advertising Gas & electricity Audit fee Bad debt Directors' remuneration Debenture interest Interest on bank loan Cash Bank Premises at cost Equipment at cost Equipment-accumulated depreciation Furniture & fittings at cost Furniture & fittings-accumulated depreciation £1 Ordinary share capital 7% Long term bank loan 11% Debentures Share premium Retained profits Interim ordinary dividend Totals Additional information as at 31/12/2021: Inventory was valued at £90,000. 650 Required: a) Income Statement for the year ended 31/12/2021. b) Statement of Financial Position as at 31/12/2021. 8639822-12- 100 100 4 9 600 130 100 20 2000 1100 70 30 60 350 100 100 120 70 2000 Page 3 of 7 • Prepayments for: Insurance £5000; distribution expenses £4000; • Accruals for: Rates £1000; Gas & electricity £2000; Audit fee £1000 • The equipment to be depreciated by 20% on reducing balance • The furniture & fittings to be depreciated by 20% on straight line. • The directors wish to provide £25,000 for taxation. The directors propose a final ordinary dividend of 8p per share.
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter14: Activities Required In Completing A Quality Audit
Section: Chapter Questions
Problem 65RSCQ
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Please help me to solve this question
![ANSWER QUESTION 1 AND ANY TWO OTHER QUESTIONS
Section A: Compulsory question for
Question 1
The trial balance below is for RP plc for the y/e 31/12/2021 (in £000s]
Purchases and Sales
Inventory 1/1/2021
Receivables and payables
Selling & distribution expenses
Rent, rates and insurance
Staff salaries
Advertising
Gas & electricity
Audit fee
Bad debt
Directors' remuneration
Debenture interest
Interest on bank loan
Cash
Bank
Premises at cost
Equipment at cost
Equipment-accumulated depreciation
Furniture & fittings at cost
Furniture & fittings - accumulated depreciation
£1 Ordinary share capital
7% Long term bank loan
11% Debentures
Share premium
Retained profits
Interim ordinary dividend
Totals
650
100
87
50
40
100
20
25
10
4
34
10
Required:
a)
Income Statement for the year ended 31/12/2021.
b) Statement of Financial Position as at 31/12/2021.
7
4
9
600
130
100
20
2000
1100
70
30
60
350
100
100
120
70
2000
Page 3 of 7
Additional information as at 31/12/2021:
• Inventory was valued at £90,000.
• Prepayments for: Insurance £5000; distribution expenses £4000;
• Accruals for: Rates £1000; Gas & electricity £2000; Audit fee £1000
• The equipment to be depreciated by 20% on reducing balance
• The furniture & fittings to be depreciated by 20% on straight line.
The directors wish to provide £25,000 for taxation.
•
• The directors propose a final ordinary dividend of 8p per share.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F490a9595-d5f1-4cf2-a91a-5c38599b15d4%2Fd1d8a0cc-30ad-4734-8052-449a4b5c26c2%2Fnteml2k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ANSWER QUESTION 1 AND ANY TWO OTHER QUESTIONS
Section A: Compulsory question for
Question 1
The trial balance below is for RP plc for the y/e 31/12/2021 (in £000s]
Purchases and Sales
Inventory 1/1/2021
Receivables and payables
Selling & distribution expenses
Rent, rates and insurance
Staff salaries
Advertising
Gas & electricity
Audit fee
Bad debt
Directors' remuneration
Debenture interest
Interest on bank loan
Cash
Bank
Premises at cost
Equipment at cost
Equipment-accumulated depreciation
Furniture & fittings at cost
Furniture & fittings - accumulated depreciation
£1 Ordinary share capital
7% Long term bank loan
11% Debentures
Share premium
Retained profits
Interim ordinary dividend
Totals
650
100
87
50
40
100
20
25
10
4
34
10
Required:
a)
Income Statement for the year ended 31/12/2021.
b) Statement of Financial Position as at 31/12/2021.
7
4
9
600
130
100
20
2000
1100
70
30
60
350
100
100
120
70
2000
Page 3 of 7
Additional information as at 31/12/2021:
• Inventory was valued at £90,000.
• Prepayments for: Insurance £5000; distribution expenses £4000;
• Accruals for: Rates £1000; Gas & electricity £2000; Audit fee £1000
• The equipment to be depreciated by 20% on reducing balance
• The furniture & fittings to be depreciated by 20% on straight line.
The directors wish to provide £25,000 for taxation.
•
• The directors propose a final ordinary dividend of 8p per share.
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