Reference no: EM13483

Research question consists of a case study: You are a accountant working for White and Associates a public accounting firm. The address the firm is xxx South Terrace, Adelaide SA 5000. The manager of your firm, Mr Paul has asked you to draft a letter in response to an email received from a client - Mr Steven, the managing director of Pacific Ltd, raising a number of issues regarding his company.

Question 1:

The subsequent is a balance sheet for Happy Feet Ltd as at 30 June 2013. On that date the company went into voluntary liquidation.

Happy Feet Ltd

Balance Sheet as at 30^th June 2013

Current  Assets	$	$
Cash at bank	14,500
Receivables	16,000
Inventory	14,500	45,000
Non-Current Assets
Plant and Equipment	164,000
Less: Accumulated Depreciation	135,000
	29,000
Land	86,000	115,000
Total Assets		160,000
Current Liabilities
Accounts Payable		72,000
NET ASSETS		88,000
Equity
Share capital
95,000 Shares issued at $1 and called to $0.50	47,500
Less: Calls in arrears (5 000 shares at $0.25 each)	1,250	46,250
Reserves		22,000
Retained Profits		19,750
EQUITY		88,000

Additional Information:

1. All assets were sold and realized cash of $215,500 and calls in arrears were collected/

2. The cost of liquidation was $3,235 and this was paid in cash to the liquidator.

3. Accounts Payables allowed us a discount of $3,200 and the outstanding debts were paid.

4. The electricity bill or invoice for June 2013 amounted to $675. This was received on 3 July 2013 and was paid by the company. It had not been recorded in the accounts previously.

Required:

Using the information above, create the attached general ledger T-accounts      

Question 2:

Prepare Company financial statements question - Torquay Limited