WORKINGS:
Note 2:
The invoices for the utilities NOT received for June $12,000 is to be treated as a prepayment.
Therefore $12,000 will be recorded under the Current Assets section of the Statement of Financial Position. The balance of $70,000 for utilities from the trial balance will be adjusted to $58,000 ($70,000-$12,000), to account for the prepayment.               
Note 3:
The $2,000 prepayment for July and August 2011 will be recorded under the Current Assets section of the Statement of Financial Position. The balance of $14,000 for insurance from the trial balance will be adjusted to $12,000 ($14,000-$2,000), to account for the prepayment. 
Note 4:
Depreciation on Fixtures and Fittings: 25% x [$226,000-$88,000] = $34,500 for year 2011. This is the depreciation charge for the Statement of Comprehensive Income.
Accumulated depreciation charged on Fixtures and Fittings as at June 30th, 2011 - [$88,000 + $34,500] = $122,500. This is the accumulated depreciation figure for the Statement of Financial Position.
Note 5:
Depreciation on Buildings: 5% x [$592,000] = $29,600 for year 2011. This is the depreciation charge for the Statement of Comprehensive Income.
Accumulated depreciation charged on Buildings as at June 30th, 2011 - [$48,000 + $29,600] = $77,600. This is the accumulated depreciation figure for the Statement of Financial Position.                                         
Note 6:
The land has been revalued upwards therefore the double entry to record the revaluation of land is:
Debit:    Land Account     $12,000
                          Credit:        Revaluation Reserve Account     $12,000
Note the Revaluation Reserve Account will appear in the Statement of Financial Position.
Note 7:
The long term loan will be recorded as follows:
$10,000 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 $30,000, ($40,000-$10,000) 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 8:
The income tax liability of $40,000 is an expense and will appear in the Statement of Comprehensive Income. This figure will also be recorded under the Current Liabilities section of the Statement of Financial Position as it is an accrual.

Note 1
A sinking bond fund refers to money that a company was required to set aside in order to repurchase some of the bonds payable it has in issue, at some point in the future. A sinking bond fund is therefore a non-current asset that should be presented under the heading "Investments". To correct the presentation of this item $12,000 needs to be deducted from the current cash balance and the Sinking Bond Fund should be displayed in the non-current asset section of the Balance Sheet.

Note 2
The allowance for doubtful debt balance should be shown separately on the Balance Sheet even though it is deducted from the accounts receivable balance to arrive at net accounts receivables.

Note 3
$5,000 of the mortgage balance should be shown under the current liabilities section of the Balance Sheet as this portion is due to be paid in one year's time. The balance of $70,000 will appear under the non-current liabilities section.

Note 4
The cost of the equipment $112,000  and the accumulated depreciation of $28,000, figure should both be shown on the face of the classified Balance Sheet, in the non-current assets section.

 ​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

​Note 1:
Issue of ordinary shares – 30,000 shares x $5.00 = $150,000
Double entry: Debit          Bank Account    $150,000
                          Credit        Ordinary shares Account    $150,000
​

Note 2:
​Loan interest – 16% x $100,000 = $16,000
Double entry: Debit        Loan Interest expense Account   $16,000
                          Credit      Bank Account    $16,000

Preference dividends – 10% x $80,000 = $8,000.
​Double entry: Debit        Bank Account    $8,000
                          Credit      Dividends paid Account $8,000

Ordinary dividends – 40¢ x{ [$200,000/$5] + 30,000 shares}  = 40¢ x 70,000 shares = $28,000
Double entry: Debit        Dividends paid  $28,000
                          Credit      Bank Account    $28,000
​