Under the traditional costing system:

• L23 total costs equals $174,000
• L24 total costs equals $362,600.
  

 ​Note 2:
Depreciation on Equipment: 10% x $170,240 = $17,024 per year. This is the depreciation charge for the Statement of Comprehensive Income.
Accumulated depreciation charged on Equipment as at December 31st 2012 - [$32,200 + $17,024] = $49,224. This figure will be recorded on the Statement of Financial Position.

Note 3:
Insurance to be recorded on the Statement of Comprehensive Income = $1,320. Prepaid insurance to be recorded on the Statement of Financial Position = [$2,590 - $1,320] = $1,270.

​Note 4:
The amount of $50,000 is now a ‘bad debt to be written off’ therefore:
Double entry: Debit        Bad Debt Expense Account         $50,000
                         Credit          Accounts Receivables  Account  $50,000

Note 2:
The bank loan will be recorded as follows:
$6,250 will be recorded under the Current Liabilities section of the Statement of Financial Position as this portion is due to be paid in less than 1 year.
The balance $25,000, ($31,250-$6,250) will be recorded under the Non Current Liabilities section of the Statement of Financial Position as this portion is not due to be paid in less than 1 year.

Note 3:
Dividends due on investments – 30¢ x $25,000 = $7,500. This would be added to the dividends from investments balance of $3,500 as this is dividends receivable. Therefore the total for the Statement of Comprehensive Income would be $11,000 i.e. ($3,500+$7,500) and the dividends receivable of $7,500 will appear in the Statement of Financial Position under Current Assets. 

Note 5:
The amount of $80,000 is now a "bad debt to be written off" therefore:
Double entry: Debit        Bad Debt Expense Account         $80,000
                          Credit          Accounts Receivables  Account  $80,000