The following information relates to the Sunshine Co-operative for the year ended August 31, 2019:
Prepaid Insurance $800
Statutory Reserve Funds $11,000
Interest Receivable22,700
Furniture and Fittings (Less Accumulated 210,000 Depreciation) $ 210,000 Members' dues receivables $ 170,000 Share Capital $300,000
Cash at Bank $224,500
The following were also determined; a. Net Income for the current year amounted to $110,000 and Undistributed
Net Income from last year was $15,000.
b. 20% of Net Income is to be transferred to the Statutory Reserve and 2 1/2% to a Special Reserve.
c. Dividends declared and paid to members amounted to $36,000
An honorarium of $1,500 is owing to the Chairman of the Management Committee. You are required to:
(a) Prepare the Appropriation Account for the year ended August 31, 2019.
(b) Prepare the statement of financial position as at August 31, 2019.