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Juice World Jamaica Limited, a leading juice manufacturing company has recently hired you as an Accounting Officer. As per job description, you are required to assist in the preparation of the financial statements. The Accounts Manager has extracted a list of balances as at December 2021 for you to review. Revenue Administrative Expenses Distribution Costs Interest paid on loan Purchases Inventories at 1 January 2021 Trade receivables Provision for doubtful debts at Jan 2021 Bad debts Non- current Investment $ 7 600 010 2 300 000 980 231 125 000 4 500 330 1 018 900 630 340 19 634 70 110 300 900 Additional notes Provide for Administrative Expenses of $500 000 paid in advance at 31 December 2021 and Distribution Costs of $50 528 owing at 31 December 2021 Provision for Doubtful Debts is to be maintained at 10% of receivables iii. Inventories at 31 December 2021 were valued at $1 000 000 Provide for corporation tax of $80 000 which is payable on October 1, 2022 v. Loan interest accrued $62 500 Required: Prepare for presentation to the shareholders a published Income Statement for the year ended 31 December 2021. 2. Notes to the Income Statement.

Juice World Jamaica Limited, a leading juice manufacturing company has recently hired you as an Accounting Officer. As per job description, you are required to assist in the preparation of the financial statements. The Accounts Manager has extracted a list of balances as at December 2021 for you to review. Revenue Administrative Expenses Distribution Costs Interest paid on loan Purchases Inventories at 1 January 2021 Trade receivables Provision for doubtful debts at Jan 2021 Bad debts Non- current Investment $ 7 600 010 2 300 000 980 231 125 000 4 500 330 1 018 900 630 340 19 634 70 110 300 900 Additional notes Provide for Administrative Expenses of $500 000 paid in advance at 31 December 2021 and Distribution Costs of $50 528 owing at 31 December 2021 Provision for Doubtful Debts is to be maintained at 10% of receivables iii. Inventories at 31 December 2021 were valued at $1 000 000 Provide for corporation tax of $80 000 which is payable on October 1, 2022 v. Loan interest accrued $62 500 Required: Prepare for presentation to the shareholders a published Income Statement for the year ended 31 December 2021. 2. Notes to the Income Statement.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 14P: Analyzing Accounts Receivable Upham Companys June 30, 2019, balance sheet included the following...
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Juice World Jamaica Limited, a leading juice manufacturing company has recently hired you as an Accounting Officer. As per job description, you are required to assist in the preparation of the financial statements. The Accounts Manager has extracted a list of balances as at December 2021 for you to review. 

 

 

Revenue

Administrative Expenses

Distribution Costs

Interest paid on loan

Purchases

Inventories at 1 January 2021

Trade receivables

Provision for doubtful debts at Jan 2021

Bad debts

Non- current Investment

$

7 600 010

2 300 000

  980 231

  125 000

4 500 330

1 018 900

  630 340

   19 634

  70 110

 300 900

 

 

 Additional notes

 

  1. Provide for Administrative Expenses of $500 000 paid in advance at 31 December 2021 and Distribution Costs of $50 528 owing at 31 December 2021
  2. Provision for Doubtful Debts is to be maintained at 10% of receivables iii. Inventories at 31 December 2021 were valued at $1 000 000
  3. Provide for corporation tax of $80 000 which is payable on October 1, 2022 v. Loan interest accrued $62 500

 

Required: 

 

  1. Prepare for presentation to the shareholders a published Income Statement for the year

ended 31 December 2021.

2. Notes to the Income Statement. 

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