Prepare set of financial statements of given information

Reference no: EM131436404

Question: Presented below is a draft set of financial statements for Chips Limited.

1750_Chips Limited.jpg

1585_Balance sheet 30 june.jpg

586_Chips equity.jpg

The following additional information is available:
1. Purchase invoices for goods received on 29 June 2006 amounting to £23,000 have not been included. This means that the cost of sales figure in the income statement has been understated.

2. A motor vehicle costing £8,000 with depreciation amounting to £5,000 was sold on 30 June 2006 for £2,100, paid by cheque. This transaction has not been included in the company's records.

3. No depreciation on motor vehicles has been charged. The annual rate is 20 per cent of cost at the year end.

4. A sale on credit for £16,000 made on 1 July 2006 has been included in the financial statements in error. The cost of sales figure is correct in respect of this item.

5. A half-yearly payment of interest on the secured loan due on 30 June 2006 has not been paid.

6. The tax charge should be 30 per cent of the reported profit before taxation. Assume that it is payable, in full, shortly after the year-end.

Required: Prepare a revised set of financial statements incorporating the additional information in 1-6 above.

Note: Work to the nearest £1,000.

Reference no: EM131436404

Questions Cloud

Find the most valuable contribution of the closure process : When creating the final report which do you find the most valuable contribution of the closure process? Have you ever experienced the stages of culture shock, if so can explain how each state felt?

Describe how the source relates to your overall research : Provide a comparison and contrast with other sources in your annotated bibliography.Describe how the source relates to your overall research. Describe the author's main research findings. Discuss the strengths and weaknesses of the source.

Test the null hypothesis of no difference in population mean : Use this information with a = 0.01 to test the null hypothesis of no difference in population mean sulfur dioxide emission rates.

Revealing what was significant to every society : In the past through art how did the artists convey meaning and express important ideas, revealing what was significant to every society, by arresting images which was their fundamental goal?

Prepare set of financial statements of given information : Purchase invoices for goods received on 29 June 2006 amounting to £23,000 have not been included. This means that the cost of sales figure in the income statement has been understated.

French and the united states approaches to early child care : 1. Briefly compare the French and the United States approaches to early child care. What are the costs of these two very different systems?

Modern way of dying in a medical institution : Which do you believe is better, the traditional way of dying at home or the modern way of dying in a medical institution? Explain your answer.

Why people want to engage and conduct business with you : Create your own branding statement with one to two adjectives and a noun i.e., your own tag line. Create your 30-second elevator speech (product pitch). Why would people want to engage and conduct business with you?

How has the economy affected social class : 1. How have deindustrialization, globalization, offshoring and unions affected workers and their families? 2. How has the economy affected social class? How does social class affect families?

User Account

All Pages