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PART 2: Preparing Financial Statements 60 Marks The listing of the ledger accounts (unadjusted) of Woodworks Manufacturing Co. Ltd on 30 June 2007 is presented below. All ledger balances are normal balances. WOODWORKS MANUFACTURING CO. LTD Unadjusted List of Accounts as at 30 June 2007 Balance K 18 375 41 250 3375 28 750 9375 67 500 245 000 43 750 Cash at bank Accounts receivable Allowance for doubtful debt Finished goods inventory, 01/07/06 Work in progress, 01/07/06 Raw materials inventory, 01/07/06 Prepaid rent Machinery and equipment Accumulated depreciation Accounts payable Bills payable Share capital Retained earnings Sales Direct labor Raw material purchases Indirect labor Factory supplies 22 500 93 750 50 000 46 250 1 075 000 270 000 256 250 88 750 22 500 Light and power insurance Selling expenses Administrative expenses 70 000 20 375 40 000 83 750 Interest expense Factory rent 1. The inventories as of 30 June 2007 were: 28 750 39 375 K 2 669 250 Additional information relating to the company is as follows: Raw materials Work in process Finished goods K 3 875 10 875 31250 2. On January 2007 the company paid $67 500 for the next 12 months factory rent. Prepaid rent was debited at the time of the transaction. 3. The Machinery and Equipment account consists of K183. 750 of factory machinery and K61, 250 of office equipment. All machinery and equipment is depreciated using a 7-year life, no residual value, and the straight-line method. 4. Expenses incurred as of year-end but not yet recorded are: direct labor, K5000; indirect labor. K1500; administrative expenses, K875. 5. The light and power, rent and insurance costs are related to factory operations. 6. Allow for company income tax expense at 40% of net profit before tax. Required: A. Prepare a cost of goods manufactured statement. B. Prepare an income statement. C. Prepare a Balance Sheet Statement. "Sheer efforts are fairly compensated" S. Timothy: C&B1 201.2 Lecturer.

PART 2: Preparing Financial Statements 60 Marks The listing of the ledger accounts (unadjusted) of Woodworks Manufacturing Co. Ltd on 30 June 2007 is presented below. All ledger balances are normal balances. WOODWORKS MANUFACTURING CO. LTD Unadjusted List of Accounts as at 30 June 2007 Balance K 18 375 41 250 3375 28 750 9375 67 500 245 000 43 750 Cash at bank Accounts receivable Allowance for doubtful debt Finished goods inventory, 01/07/06 Work in progress, 01/07/06 Raw materials inventory, 01/07/06 Prepaid rent Machinery and equipment Accumulated depreciation Accounts payable Bills payable Share capital Retained earnings Sales Direct labor Raw material purchases Indirect labor Factory supplies 22 500 93 750 50 000 46 250 1 075 000 270 000 256 250 88 750 22 500 Light and power insurance Selling expenses Administrative expenses 70 000 20 375 40 000 83 750 Interest expense Factory rent 1. The inventories as of 30 June 2007 were: 28 750 39 375 K 2 669 250 Additional information relating to the company is as follows: Raw materials Work in process Finished goods K 3 875 10 875 31250 2. On January 2007 the company paid $67 500 for the next 12 months factory rent. Prepaid rent was debited at the time of the transaction. 3. The Machinery and Equipment account consists of K183. 750 of factory machinery and K61, 250 of office equipment. All machinery and equipment is depreciated using a 7-year life, no residual value, and the straight-line method. 4. Expenses incurred as of year-end but not yet recorded are: direct labor, K5000; indirect labor. K1500; administrative expenses, K875. 5. The light and power, rent and insurance costs are related to factory operations. 6. Allow for company income tax expense at 40% of net profit before tax. Required: A. Prepare a cost of goods manufactured statement. B. Prepare an income statement. C. Prepare a Balance Sheet Statement. "Sheer efforts are fairly compensated" S. Timothy: C&B1 201.2 Lecturer.

Century 21 Accounting General Journal
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter14: Accounting For Uncollectible Accounts Receivable
Section14.2: Writing Off And Collecting Uncollectible Accounts Receivable
Problem 1WT
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PART 2: Preparing Financial Statements 60 Marks The listing of the ledger accounts (unadjusted) of Woodworks Manufacturing Co. Ltd on 30 June 2007 is presented below. All ledger balances are normal balances. WOODWORKS MANUFACTURING CO. LTD Unadjusted List of Accounts as at 30 June 2007 Balance K 18 375 41 250 3375 28 750 9375 67 500 245 000 43 750 Cash at bank Accounts receivable Allowance for doubtful debt Finished goods inventory, 01/07/06 Work in progress, 01/07/06 Raw materials inventory, 01/07/06 Prepaid rent Machinery and equipment Accumulated depreciation Accounts payable Bills payable Share capital Retained earnings Sales Direct labor Raw material purchases Indirect labor Factory supplies 22 500 93 750 50 000 46 250 1 075 000 270 000 256 250 88 750 22 500 Light and power insurance Selling expenses Administrative expenses 70 000 20 375 40 000 83 750 Interest expense Factory rent 1. The inventories as of 30 June 2007 were: 28 750 39 375 K 2 669 250 Additional information relating to the company is as follows: Raw materials Work in process Finished goods K 3 875 10 875 31250 2. On January 2007 the company paid $67 500 for the next 12 months factory rent. Prepaid rent was debited at the time of the transaction. 3. The Machinery and Equipment account consists of K183. 750 of factory machinery and K61, 250 of office equipment. All machinery and equipment is depreciated using a 7-year life, no residual value, and the straight-line method. 4. Expenses incurred as of year-end but not yet recorded are: direct labor, K5000; indirect labor. K1500; administrative expenses, K875. 5. The light and power, rent and insurance costs are related to factory operations. 6. Allow for company income tax expense at 40% of net profit before tax. Required: A. Prepare a cost of goods manufactured statement. B. Prepare an income statement. C. Prepare a Balance Sheet Statement. "Sheer efforts are fairly compensated" S. Timothy: C&B1 201.2 Lecturer.
Transcribed Image Text:PART 2: Preparing Financial Statements 60 Marks The listing of the ledger accounts (unadjusted) of Woodworks Manufacturing Co. Ltd on 30 June 2007 is presented below. All ledger balances are normal balances. WOODWORKS MANUFACTURING CO. LTD Unadjusted List of Accounts as at 30 June 2007 Balance K 18 375 41 250 3375 28 750 9375 67 500 245 000 43 750 Cash at bank Accounts receivable Allowance for doubtful debt Finished goods inventory, 01/07/06 Work in progress, 01/07/06 Raw materials inventory, 01/07/06 Prepaid rent Machinery and equipment Accumulated depreciation Accounts payable Bills payable Share capital Retained earnings Sales Direct labor Raw material purchases Indirect labor Factory supplies 22 500 93 750 50 000 46 250 1 075 000 270 000 256 250 88 750 22 500 Light and power insurance Selling expenses Administrative expenses 70 000 20 375 40 000 83 750 Interest expense Factory rent 1. The inventories as of 30 June 2007 were: 28 750 39 375 K 2 669 250 Additional information relating to the company is as follows: Raw materials Work in process Finished goods K 3 875 10 875 31250 2. On January 2007 the company paid $67 500 for the next 12 months factory rent. Prepaid rent was debited at the time of the transaction. 3. The Machinery and Equipment account consists of K183. 750 of factory machinery and K61, 250 of office equipment. All machinery and equipment is depreciated using a 7-year life, no residual value, and the straight-line method. 4. Expenses incurred as of year-end but not yet recorded are: direct labor, K5000; indirect labor. K1500; administrative expenses, K875. 5. The light and power, rent and insurance costs are related to factory operations. 6. Allow for company income tax expense at 40% of net profit before tax. Required: A. Prepare a cost of goods manufactured statement. B. Prepare an income statement. C. Prepare a Balance Sheet Statement. "Sheer efforts are fairly compensated" S. Timothy: C&B1 201.2 Lecturer.
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