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 30th 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