20181009_Hometask.docx - Wild Ltd started trading on 1 January 2017 The statement of comprehensive income and statement of financial position for the

20181009_Hometask.docx - Wild Ltd started trading on 1...

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Wild Ltd started trading on 1 January 2017. The statement of comprehensive income and statement of financial position for the first year of trading are given as follows: Statement of comprehensive income for the year ended 31 December 2017 £ £ Revenue 378,000 Cost of sales Opening inventory 21,000 Purchases 252,000 Closing inventory (30,000) (243,000) Gross profit 135,000 Expenses (42,000) Depreciation (11,800) Net profit 81,200 Statement of financial position as at 31 December 2017 £ Non-current assets – net book value 391,400 Inventory 30,000 Cash 348,600 Total assets 770,000 Share capital (£1 shares) 420,000 Retained earnings 81,200 Accounts payable 268,800 Equity and liabilities 770,000 The price change indices for the year were identified as follows: RPI Non-current assets Inventory 1 January 2017 140 200 160 Average 2017 160 210 200 31 October 2017 170 225 240 31 December 2017 180 230 250 Closing inventory was acquired on 31 October 2017. 50% of the non-current assets were acquired
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  • Spring '16
  • Robert Stavins
  • Generally Accepted Accounting Principles, 50%, Wild Ltd, first year of trading

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