Question

Level 4

In this group projects:

Assume that you are an accountant in Maida Vale company. Your manager provided you with the following balances that shows the balances for the year ended December 31, 2018 ( as shown below). He asked you to prepare the trail balance for the company. While you were looking at the trial balance, you found that some numbers are missing. When you informed your manager about the them, he provided you with some documents that will help you to figure out the missing information.

Cash	900000
Interest revenue	92500
Sales returns and allowances	87500
Sales revenue	2724500
Sales discounts	56250
Accounts payable	612500
Land	600000
Bonds payable	356250
Equipment	1837500
Notes payable (to banks)	331250
Share capital—ordinary, €1 par value	250000
Notes receivable	557125
Selling expenses	37812
Administrative and general expenses	75000
Interest expense	87500
Loss from impairment of plant assets Share capital—ordinary	106250
Goodwill	240525
Income taxes receivable	122038
Prepaid expenses	25625
Trading securities	87500
Payroll taxes payable	221989
Buildings	2050000
Retained earnings	????
Unsecured notes payable (long-term)	2000000
Accumulated depreciation—equipment	365000
Rent payable (short-term)	56250
Income taxes payable	122953
Long-term rental obligations	628125
Share capital—preference, €10 par value	187500
Accumulated depreciation- Buildings	337750

The purchases and sales transaction history during the year:

Month	purchases	Price	Month	Sales	price
1st Jan	30000	30	30st Feb	30000	50
1st Feb	15000	31	30st April	15000	51
1st Mach	7000	32	30st May	3000	52
April	15000	33	30st Jun	4000	53
1st May	8000	34	30st July	10000	54

At the end of the year, December 31, 2018, Maida Vale reported the following information:
Accounts receivable, including 500 bad debts, expanses 1300500

An allowance of 10% of the receivables needs to be reflected however, the account of allowance is debited with 50000

Answer 1

As per the data avaiable the trial balance as on 31.12.2018 is prepared and attached here with

Closing stock in hand is calculated on FIFO basis.

The value of sales is considered as per the information provided in the tabular data