Question Two The Whispering Cove plc has provided the following as at December 31, 2017 Cost of Sales Closing Stock 10% Debenture Debenture Interest General Reserves Retained Earnings Goodwill Ordinary Share Capital @ $2 10% Preference Share Capital @ $1 Sales Turnover Debtors Bank Administrative Costs Selling and Distribution Costs Property Plant & Equipment Motor Vehicle Provision for Depreciation on Motor Vehicle Creditors Interim Ordinary Shares Dividend DR 700.000 210,000 20,000 a) The Statement of Profit and Loss 20,000 200.000 60.000 122,000 139,000 600,000 500,000 CR 5. The corporation tax is estimated at $40,000 Required 1. Prepare the following for the year ending December 31, 2017 : 350,000 40,000 b) The Statement of Change in Equity NOTE: The Statement of Financial Position is NOT required 2. State three factors that may influence a company's decision to pay dividends 400,000 400,000 1,300,000 8,000 5,000 2,576,000 2,576,000 Additional Details Provided 1. The motor vehicle is to be depreciated at 10% p.a. on the reducing balance basis. The annual depreciation charge is to be added equally to the administrative costs and selling and distribution costs 40,000 38,000 2. The administrative costs were prepaid by $2,000, while the selling and distribution costs were owing by $6,000 3. The goodwill is to be written down by 25% 4. Prior to the end of the year the directors voted to support a resolution to pay final ordinary shares dividends at $0.10 per share; as well as the amount due for the preference shares dividends.
Question Two The Whispering Cove plc has provided the following as at December 31, 2017 Cost of Sales Closing Stock 10% Debenture Debenture Interest General Reserves Retained Earnings Goodwill Ordinary Share Capital @ $2 10% Preference Share Capital @ $1 Sales Turnover Debtors Bank Administrative Costs Selling and Distribution Costs Property Plant & Equipment Motor Vehicle Provision for Depreciation on Motor Vehicle Creditors Interim Ordinary Shares Dividend DR 700.000 210,000 20,000 a) The Statement of Profit and Loss 20,000 200.000 60.000 122,000 139,000 600,000 500,000 CR 5. The corporation tax is estimated at $40,000 Required 1. Prepare the following for the year ending December 31, 2017 : 350,000 40,000 b) The Statement of Change in Equity NOTE: The Statement of Financial Position is NOT required 2. State three factors that may influence a company's decision to pay dividends 400,000 400,000 1,300,000 8,000 5,000 2,576,000 2,576,000 Additional Details Provided 1. The motor vehicle is to be depreciated at 10% p.a. on the reducing balance basis. The annual depreciation charge is to be added equally to the administrative costs and selling and distribution costs 40,000 38,000 2. The administrative costs were prepaid by $2,000, while the selling and distribution costs were owing by $6,000 3. The goodwill is to be written down by 25% 4. Prior to the end of the year the directors voted to support a resolution to pay final ordinary shares dividends at $0.10 per share; as well as the amount due for the preference shares dividends.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question Two
The Whispering Cove plc has provided the following as at December 31, 2017
Cost of Sales
Closing Stock
10% Debenture
Debenture Interest
General Reserves
Retained Earnings
Goodwill
Ordinary Share Capital @ $2
10% Preference Share Capital @ $1
Sales Turnover
Debtors
Bank
Administrative Costs
Selling and Distribution Costs
Property Plant & Equipment
Motor Vehicle
Provision for Depreciation on Motor Vehicle
Creditors
Interim Ordinary Shares Dividend
Additional Details Provided
DR
700.000
210,000
20,000
20,000
200,000
60,000
122,000
139,000
600,000
500,000
CR
350,000
1. Prepa the lowing for year ending December 31, 2017 :
a) The Statement of Profit and Loss
40,000
b) The Statement of Change in Equity
NOTE: The Statement of Financial Position is NOT required
2. State three factors that may influence a company's decision
to pay dividends
400,000
400,000
1,300,000
8,000
5,000
2,576,000 2,576,000
40,000
38,000
1.
The motor vehicle is to be depreciated at 10% p.a. on the reducing balance basis. The
annual depreciation charge is to be added equally to the administrative costs and selling
and distribution costs
2. The administrative costs were prepaid by $2,000, while the selling and distribution costs
were owing by $6,000
3. The goodwill is to be written down by 25%
4. Prior to the end of the year the directors voted to support a resolution to pay final
ordinary shares dividends at $0.10 per share; as well as the amount due for the preference
shares dividends."
5. The corporation tax is estimated at $40,000
Required
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