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A Refresher in Financial Accounting by Faisal Sheikh

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CHAPTER 6

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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