V18 The trial balance of Gamma shows the following balances at 31 December 2021: Issued share...

 

Transcribed Image Text:

V18 The trial balance of Gamma shows the following balances at 31 December 2021: Issued share capital (600,000 shares) Share premium Revaluation reserve (Land) Retained earnings 1 January 2021 Inventory (goods for resale) at 1 January 2021 Revenue Purchases Purchases returns Sales returns Carriage outwards Warehouse wages Right-of-use asset Administrative wages Directors' salaries Lease liabilities Investment income Bank overdraft Trade receivables Cash at bank Land Additional information: (1) (2) (3) Warehouse plant and equipment cost Accumulated depreciation 1 January 2021 Delivery vehicle hire Distribution expenses Administrative expenses 30 (5) (6) (7) (8) (9) Dr $000 (10) 60 28 28 80 60 30 20 10 30 590 120 1688 102 380 110 Cr $000 300 20 20 50 26 1092 50 60 30 40 1688 Inventories at 1 January 2022 were valued at $40,000. Depreciation charges for the year amounting to $27,000 and $5,000 are to be included in distribution costs and administrative expenses, respectively. The income tax rate is 20%. A final dividend of $0.50 per share was declared on 31 March 2022. There were no disposals of any non-current assets during the year. Land was revalued at 31 December 2021 to $90,000. No entries have yet been made to record this. Insurance for delivery vehicles is to be accrued as $2,000. Receivables totalling $20,000 are to be written off Bonus for administration director for 2021 is evaluated as 1% of gross profit General reserve is to be created at $2,000 Allowance for receivables should be created as 2% of net receivables Required: Prepare a) a statement of profit or loss and other comprehensive income for the year ended 31 December 2021, b) a statement of changes in equity for the year ended 31 December 2021, c) a statement of financial position at that date, d) notes, in accordance with IAS 1 "Presentation of Financial Statements". Your answer should be as complete and informative as possible within the limits of the information given to you. An accounting policy note is also required. V18 The trial balance of Gamma shows the following balances at 31 December 2021: Issued share capital (600,000 shares) Share premium Revaluation reserve (Land) Retained earnings 1 January 2021 Inventory (goods for resale) at 1 January 2021 Revenue Purchases Purchases returns Sales returns Carriage outwards Warehouse wages Right-of-use asset Administrative wages Directors' salaries Lease liabilities Investment income Bank overdraft Trade receivables Cash at bank Land Additional information: (1) (2) (3) Warehouse plant and equipment cost Accumulated depreciation 1 January 2021 Delivery vehicle hire Distribution expenses Administrative expenses 30 (5) (6) (7) (8) (9) Dr $000 (10) 60 28 28 80 60 30 20 10 30 590 120 1688 102 380 110 Cr $000 300 20 20 50 26 1092 50 60 30 40 1688 Inventories at 1 January 2022 were valued at $40,000. Depreciation charges for the year amounting to $27,000 and $5,000 are to be included in distribution costs and administrative expenses, respectively. The income tax rate is 20%. A final dividend of $0.50 per share was declared on 31 March 2022. There were no disposals of any non-current assets during the year. Land was revalued at 31 December 2021 to $90,000. No entries have yet been made to record this. Insurance for delivery vehicles is to be accrued as $2,000. Receivables totalling $20,000 are to be written off Bonus for administration director for 2021 is evaluated as 1% of gross profit General reserve is to be created at $2,000 Allowance for receivables should be created as 2% of net receivables Required: Prepare a) a statement of profit or loss and other comprehensive income for the year ended 31 December 2021, b) a statement of changes in equity for the year ended 31 December 2021, c) a statement of financial position at that date, d) notes, in accordance with IAS 1 "Presentation of Financial Statements". Your answer should be as complete and informative as possible within the limits of the information given to you. An accounting policy note is also required.