Juice World Jamaica Limited, a leading juice manufacturing company has recently hired you as an Accounting Officer. As per job description, you are required to assist in the preparation of the financial statements. The Accounts Manager has extracted a list of balances as at December 2021 for you to review. Revenue 7 600 010 2 300 000 Administrative Expenses Distribution Costs 980 231 125 000 4 500 330 Interest paid on loan Purchases Inventories at 1 January 2021 Trade receivables 1 018 900 630 340 19 634 Provision for doubtful debts at Jan 2021 Bad debts Non- current Investment 70 110 300 900 Additional notes Provide for Administrative Expenses of $500 000 paid in advance at 31 December 2021 and Distribution Costs of $50 528 owing at 31 December 2021 ii. i. Provision for Doubtful Debts is to be maintained at 10% of receivables iii. Inventories at 31 December 2021 were valued at $1 000 000 Provide for corporation tax of $80 000 which is payable on October 1, 2022 Loan interest accrued $62 500 iv. V. Required: Prepare for presentation to the shareholders a published Income Statement for the year ended 31 December 2021. A. В. Notes to the Income Statement.
Juice World Jamaica Limited, a leading juice manufacturing company has recently hired you as an Accounting Officer. As per job description, you are required to assist in the preparation of the financial statements. The Accounts Manager has extracted a list of balances as at December 2021 for you to review. Revenue 7 600 010 2 300 000 Administrative Expenses Distribution Costs 980 231 125 000 4 500 330 Interest paid on loan Purchases Inventories at 1 January 2021 Trade receivables 1 018 900 630 340 19 634 Provision for doubtful debts at Jan 2021 Bad debts Non- current Investment 70 110 300 900 Additional notes Provide for Administrative Expenses of $500 000 paid in advance at 31 December 2021 and Distribution Costs of $50 528 owing at 31 December 2021 ii. i. Provision for Doubtful Debts is to be maintained at 10% of receivables iii. Inventories at 31 December 2021 were valued at $1 000 000 Provide for corporation tax of $80 000 which is payable on October 1, 2022 Loan interest accrued $62 500 iv. V. Required: Prepare for presentation to the shareholders a published Income Statement for the year ended 31 December 2021. A. В. Notes to the Income Statement.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter4: Completing The Accounting Cycle
Section: Chapter Questions
Problem 5CP
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