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GB518_Assignment 4_Question 5_TT Ltd




Question;Question 5 (20 marks);The following is the statement of financial position of TT Ltd. at the;end of the first year of trading;Statement of Financial Position as at 31st;December 2013;Current Assets;Cash At Bank;$750;Prepaid Expenses;$5 300;Accounts Receivable;$19,600;Inventory;$65,000;$90,650;Non-Current Assets;Motor Vehicles- Cost;$12,000;Accumulated Depreciation;($2,500);$9,500;TOTAL ASSETS;$100,150;Current Liabilities;Accrued Expenses;$1,250;Accounts Payable;$22,000;$23,250;Owner?s Equity;Original;$50,000;Retained Profit;$26,900;$76,900;Total Liabilities And Owner?s Equity;$100,150;?;Prepaid expenses;included $5,000 for rent and $300 for rates.;?;Accrued expenses;included wages of $630 and electricity of $620.;During 2014, the following transactions took place;?;The owner?s withdrawal;capital In the form of cash of $20,000;?;A premise continues to;be rented at an annual rental of $20,000. During the year, rent of $15,000 was;paid to owner of the premises.;?;Rates on the premises;were paid during the year for period 1st April 2014 to 31st;March 2015, $1,300.;?;A second delivery;vehicle was bought on 1st January for $13,000. This is expected to be used in business;for four years and then be sold for $3,000.;?;Wages totalling $36,700;were paid during the year. At the end of the year the business owed $860 of;wages for the last week of the year;?;Electricity bills;totalling $1,820 for the first three quarters of the year were paid. After 31st;December 2014, once the accounts had been finalised for the year, the bill for;the last quarter arrived showing a charge of $690.;?;Inventory totalling;$67,000 was bought on credit.;?;Inventory totalling $8,000;was bought for cash.;?;Sales on credit totalled;$179,000 (cost $89,000).;?;Cash sales totalled;$54,000 (cost $25,000).;?;Receipts from accounts;receivable totalled $178,000.;?;Payments to accounts;payable totalled $71,000.;?;Vehicle running expenses;paid totalled $16,200.;REQUIRED;Prepare a Statement of Financial Position as at 31st December 2014 and a;Statement of Comprehensive Income for the year to date.


Paper#37482 | Written in 18-Jul-2015

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