the adjusted trial balance of knapp ltd as at 30 june 2017 is as follows debit credi 708847

QUESTION 1 – DISCLOSURE The adjusted trial balance of Knapp Ltd as at 30 June 2017 is as follows: Debit Credit $ $ Administration expenses 689,000 Advertising expenses 109,000 Bank loan 216,000 Carrying amount of plant and machinery sold 23,000 Cost of sales 3,421,000 Sales commission expense 45,000 Deposits at call 132,000 Dividends received 43,000 Deferred tax asset 212,000 Ordinary shares, fully paid 3,960,000 General reserve 724,000 Goodwill 742,000 Accounts receivable 1,334,000 Asset revaluation reserve 346,000 Accumulated impairment loss – goodwill 180,000 Accumulated depreciation Plant & machinery 206,000 Fixtures & fittings 47,000 Retained profits – 1/7/2016 800,000 Mortgage loan (secured over land – due 30/9/2021) 239,000 Accounts payable 486,000 Current tax liabilities 268,000 GST payable 8,000 Provision for long service leave (only 40% is currently eligible) 265,000 Deferred tax liability 175,000 Allowance for doubtful debts 77,000 Provision for annual leave 62,000 Freehold land (at fair value) 1,724,000 Buildings (at fair value) 900,000 Listed investments – at cost (long term) 559,000 Plant & machinery at cost 684,000 Preference shares, fully paid 200,000 Prepayments 30,000 Inventories 2,000,000 Income tax expense 367,000 Final dividend payable 165,000 Fixtures & fittings at cost 118,000 Cash at bank 483,000 Sales revenue 6,124,000 Share options 19,000 7% debentures (secured over inventories – due 30/4/2018) 120,000 Proceeds on sale of plant and…