Case Study 2—Corporation Accounting
The CFO of Leggo Inc. has prepared the following trial balance as at December 31, 2016.
$’000 |
|
50c Common Stock (fully paid) |
350 |
7% $1 Preference stock (fully paid) |
100 |
10% Loan notes |
200 |
Retained earnings (beginning) |
242 |
General reserve (beginning) |
171 |
Land and buildings |
430 |
Plant and machinery |
830 |
Accumulated depreciation: |
|
Buildings |
20 |
Plant and machinery |
222 |
Inventory |
190 |
Sales revenues2, |
695 |
Purchases2, |
152 |
Preference dividend |
7 |
Common dividend (interim) |
8 |
Loan interest |
10 |
Wages and salaries |
254 |
Light and heat |
31 |
Sundry expenses |
113 |
Suspense account |
135 |
Trade accounts receivable |
179 |
Trade accounts payable |
195 |
Cash |
126 |
Notes
1.Sundry expenses ...
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