|
Trendy plc |
|
|
Statement of comprehensive income for the year ended 31 March 2020 |
|
|
£ |
|
|
Revenue (W1) |
4,933,500.00 |
|
Cost of sales (W1) |
(1,968,720.00) |
|
Gross profit |
2,964,780.00 |
|
Distribution expenses (W1) |
(265,200.00) |
|
Administration expenses (W1) |
(592,200.00) |
|
Other operating income (2) |
144,000.00 |
|
Interest expense (7) + (9) |
(41,850.00) |
|
Profit from operating activities |
2,209,530.00 |
|
Finance costs (7) |
(119,400.00) |
|
Profit before tax |
2,090,130.00 |
|
Taxation (W6) |
(130,000.00) |
|
Profit for the year |
1,960,130.00 |
|
Internally generated goodwill |
1,500,000.00 |
|
Provision for Legal Fees (4) |
(46,295.00) |
|
Provision for Legal dispute (4) |
(92,590.00) |
|
Loss due to Flash Flood |
(240,000.00) |
|
Loss due to Fraudulent reporting |
(225,000.00) |
|
Other items |
896,115.00 |
|
Working - W1 - Operating expenses |
||||
|
Revenue |
Cost of Sales |
Distribution Expenses |
Admin expenses |
|
|
£ |
£ |
£ |
£ |
|
|
Per Trial Balance |
4,933,500 |
1,855,200 |
227,700 |
404,700 |
|
Depreciation (1): |
||||
|
- Buildings (1) |
113,520 |
|||
|
- Motor Vehicle (1) |
37,500 |
|||
|
- Office Equipment (1) |
187,500 |
|||
|
Total to Statement of Comprehensive Income |
4,933,500 |
1,968,720 |
265,200 |
592,20 |
Is this correct? Does finance cost to be post in SCI for Trendy Plc?
In: Accounting
in class we discussed a number of situations where a
seller could recognize(at least some) revenue before it had fully
completed every obligation under a contract which of the following
items does NOT represent one of these situations
a) a partially fulfilled sales contract with multiple performance
obligations
b) a sales contract where cash collection is not probable
c) a partially completed sales contract that qualifies for revenue
recognition overtime
d) a bill-and-hold sale
e) a sales contract with a return policy
In: Accounting
What could be accomplished without the rules for Internal Revenue Code Section 704 i.e. partners with plenty of money and no time vs. partners with plenty of time and no money?
In: Accounting
A suburban hotel derives its revenue from its hotel and restaurant operations. The owners are interested in the relationship between the number of rooms occupied on a nightly basis and the revenue per day in the restaurant. Below is a sample of 25 days (Monday through Thursday) from last year showing the restaurant income and number of rooms occupied.
| Day | Revenue | Occupied | Day | Revenue | Occupied | ||||||||
| 1 | $ | 1,452 | 60 | 14 | $ | 1,425 | 31 | ||||||
| 2 | 1,361 | 20 | 15 | 1,445 | 51 | ||||||||
| 3 | 1,426 | 21 | 16 | 1,439 | 62 | ||||||||
| 4 | 1,470 | 80 | 17 | 1,348 | 45 | ||||||||
| 5 | 1,456 | 70 | 18 | 1,450 | 41 | ||||||||
| 6 | 1,430 | 29 | 19 | 1,431 | 62 | ||||||||
| 7 | 1,354 | 30 | 20 | 1,446 | 47 | ||||||||
| 8 | 1,442 | 21 | 21 | 1,485 | 43 | ||||||||
| 9 | 1,394 | 15 | 22 | 1,405 | 38 | ||||||||
| 10 | 1,459 | 36 | 23 | 1,461 | 36 | ||||||||
| 11 | 1,399 | 41 | 24 | 1,490 | 30 | ||||||||
| 12 | 1,458 | 35 | 25 | 1,426 | 65 | ||||||||
| 13 | 1,537 | 51 | |||||||||||
In: Statistics and Probability
A firm shuts down in the short run when its revenue is less than fixed costs because fixed costs always have to be paid. True or False? Explain your reasoning.
In: Economics
At the beginning of 2017, Swifty Construction Company changed
from the completed-contract method to recognizing revenue over time
(percentage-of-completion) for financial reporting purposes. The
company will continue to use the completed-contract method for tax
purposes. For years prior to 2017, pretax income under the two
methods was as follows: percentage-of-completion $114,600, and
completed-contract $84,000. The tax rate is 40%. Swifty has a
profit-sharing plan, which pays all employees a bonus at year-end
based on 2% of pretax income.
Compute the indirect effect of Swifty’s change in accounting
principle that will be reported in the 2017 income statement,
assuming that the profit-sharing contract explicitly requires
adjustment for changes in income numbers.
ANSWER 612
In: Accounting
What effect does a sale on credit have on the following accounts Accounts Receivable, Sales Revenue, Cost of Goods Sold, and Inventory ? Does each account increase or decrease ?
In: Accounting
| Virginia State University wants to raise its tuition and increase its revenue. It wants consumers that are | |||||||||||||||||||||||||||||||
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In: Economics
Han Merchants has a periodic inventory system, uses the earnings approach to recognize revenue, and has the following accounts in its chart of accounts for its income statement.
For each account listed below:
| (a) | Assuming Han Merchants prepares a multiple-step income statement, specify how the account should be classified: | |
| (b) | Indicate if the closing of this account will require a debit or a credit. |
| (a) | (b) | |||||
|---|---|---|---|---|---|---|
| Account | Classification | Closed with Debit or Credit | ||||
| 1 | Freight out | Contra revenueOther expensesOther revenuesSalesOperating expensesCost of goods sold | DebitCredit | |||
| 2 | Sales discounts | Contra revenueSalesOther revenuesOperating expensesCost of goods soldOther expenses | DebitCredit | |||
| 3 | Purchase returns and allowances | Operating expensesSalesOther revenuesCost of goods soldContra revenueOther expenses | CreditDebit | |||
| 4 | Interest expense | Operating expensesOther expensesCost of goods soldOther revenuesContra revenueSales | DebitCredit | |||
| 5 | Merchandise inventory, ending | SalesOperating expensesOther revenuesContra revenueOther expensesCost of goods sold | DebitCredit | |||
| 6 | Advertising expense | Operating expensesOther revenuesOther expensesContra revenueSalesCost of goods sold | CreditDebit | |||
| 7 | Freight in | Contra revenueOther revenuesCost of goods soldOperating expensesSalesOther expenses | CreditDebit | |||
| 8 | Salaries expense | Operating expensesSalesContra revenueCost of goods soldOther revenuesOther expenses | DebitCredit | |||
| 9 | Utilities expense | Cost of goods soldContra revenueSalesOther revenuesOperating expensesOther expenses | CreditDebit | |||
| 10 | Insurance expense | Other expensesContra revenueOperating expensesCost of goods soldOther revenuesSales | CreditDebit | |||
| 11 | Sales returns and allowances | Other revenuesOperating expensesContra revenueOther expensesCost of goods soldSales | CreditDebit | |||
| 12 | Rent revenue | Contra revenueOperating expensesOther revenuesCost of goods soldSalesOther expenses | CreditDebit | |||
| 13 | Purchase discounts | Other revenuesSalesOperating expensesOther expensesContra revenueCost of goods sold | CreditDebit | |||
| 14 | Property tax expense | Other revenuesCost of goods soldSalesOther expensesContra revenueOperating expenses | CreditDebit | |||
| 15 | Sales | Contra revenueOperating expensesSalesOther revenuesCost of goods soldOther expenses | CreditDebit | |||
| 16 | Merchandise inventory, beginning | Operating expensesOther expensesContra revenueOther revenuesCost of goods soldSales | CreditDebit | |||
| 17 | Interest revenue | Operating expensesSalesOther revenuesCost of goods soldOther expensesContra revenue | CreditDebit | |||
| 18 | Depreciation expense | SalesCost of goods soldOther revenuesOperating expensesContra revenueOther expenses | CreditDebit | |||
| 19 | Purchases | Other expensesSalesContra revenueOperating expensesCost of goods soldOther revenues | DebitCredit | |||
In: Accounting
1) Sales revenue for a sporting goods store amounted to $215,000 for the current period. All sales are on account and are subject to a sales tax of 7%. Which of the following would be included in the journal entry to record these sales?
A) A debit to Sales revenue for $215,000
B) A credit to Accounts receivable for $215,000
C) A debit to Sales tax payable for $15,050
D) A debit to Accounts receivable for $230,050
2) A $20,000, 3-month, 8% note payable was issued on November 1, 2015. What is the amount of accrued interest on December 31, 2015?
A) $200
B) $267
C) $133
D) $800
3) A $20,000, 3-month, 8% note payable was issued on November 1, 2015. Which of the following would be included in the journal entry required on the note's maturity date?
A) A credit to Note payable for $20,400
B) A credit to Cash for $10,000
C) A debit to Interest expense for $133
D) A debit to Interest payable for $133
4) Joe signs a $5,000, 8%, 6-month note dated September 1, 2012. What is Joe's 2013 interest expense for this note?
A) $133
B) $200
C) $400
D) $67
5) Archie's had sales of $6,758. The state sales tax rate is 7%. All sales are cash. What amount will be debited to Cash?
A) $6,758.00
B) $7,231.06
C) $473.06
D) $866.06
6) A company has been sued for product failures allegedly resulting in injuries to the individuals bringing the lawsuit. The company's lawyers believe it is more than remote, but less than probable, that the lawsuit will result in an actual liability. Which of the following actions should be taken by the company's management?
A) The liability should be estimated and recorded as an expense.
B) The situation should be described in a note to the financial statements.
C) The possible liability should be ignored.
D) Management should consider resigning.
7) Ace Appliances sells dishwashers with a 3-year warranty. In 2013, there are $90,000 of sales revenues for dishwashers. The company estimates warranty expense at 3% of revenues. What is the total estimated warranty payable for Ace regarding the sales in 2013?
A) $2,700
B) $600
C) $1,400
D) $3,000
8) Sue works 46 hours at her job during the week. She is paid $13.30/hour and receives overtime at the rate of time-and-one-half for hours worked over forty. What is Sue's gross pay for the week?
A) $611.80
B) $917.70
C) $651.70
9) Which of the following deductions must be matched by the employer, resulting in both a deduction from gross pay and an expense to the employer?
A) Federal income taxes
B) Federal unemployment taxes
C) FICA taxes
D) Charitable deductions
10 ) Tom's gross pay for the week is $800. Tom's deduction for federal income tax is based on a rate of 18%. Tom has no voluntary deductions. Tom's yearly pay is under the limit for OASDI. What is the amount of Tom's net pay?
A) $594.80
B) $738.80
C) $656.00
D) $533.60
In: Accounting