Reference no: EM13285
Case Study
Research question consists of a case study: You are a graduate accountant working for White and Associates a public accounting firm. The address the firm is 777 South Terrace, Adelaide SA 5000. The manager of your firm, Mr Paul Jones has asked you to draft a letter in response to an email received from a client - Mr Steven Evans, the managing director of Pacific Ltd, raising a number of issues regarding his company.
Question 2
The following 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
|
|
|
|
|
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Non-Current Assets
|
|
|
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Plant and Equipment
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164,000
|
|
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Less: Accumulated Depreciation
|
135,000
|
|
|
|
29,000
|
|
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Land
|
86,000
|
115,000
|
|
|
|
|
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Total Assets
|
|
160,000
|
|
|
|
|
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Current Liabilities
|
|
|
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Accounts Payable
|
|
72,000
|
|
|
|
|
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NET ASSETS
|
|
88,000
|
|
|
|
|
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Equity
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|
|
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Share capital
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|
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95,000 Shares issued at $1 and called to $0.50
|
47,500
|
|
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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/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, prepare the attached general ledger T-accounts
Question 3:
Company financial statements question - Torquay Limited