1. Prepare the statement of financial position and comprehensive income for ABC Company on Dec 31st 2020 according to IAS1 and calculate retained earnings beginning balance?

Account name	Debit	Credit
Buildings	1,200,000
Cash	320,000
Sales revenues		16,000,000
Sales commission	120,000
Travel expense - sale	75,000
Equipment	840,000
Account payable		420,000
Goodwill	3,000,000
Purchases	6,400,000
Trading securities	1,460,000
Account receivables	810,000
License	475,000
Audit fees	90,000
Freight in	85,000
Repair expenses	76,000
Purchases discount		128,000
Beginning inventory	1,487,500
Share capital ordinary		4,250,000
Advertising expenses	630,000
Supplies	112,000
Prepaid insurance	120,000
Notes receivables	1,650,000
Bonds payables		5,000,000
Wages payable		62,000
Dividends revenues		243,000
Sales discount	145,000
Trade payables		88,000
Lands	3,050,000
Delivery expenses	313,000
Rent expenses	94,000
Insurance expense	40,000
Motor vehicles	1,550,000
Revaluation surplus		150,000
Share capital preference		2,000,000
Franchise	1,450,000
Mortgage payable		900,000
Dividends declared		700,000
Land for speculations	650,000

Account name	Debit	Credit
Motor vehicles Accumulated depreciations		180,000
Depreciation expenses	630,000
Purchases returns and allowance		96,000
Interest expenses	1,150,000
Gains on sale of lands		455,000
Notes payable		2,890,000
Equipment accumulated depreciation		440,000
Impairment loss equipment	260,000
Accumulated unrealized gains of non-trading securities		265,000
Sales returns and allowance	215,000
Customs and taxes purchases	1,045,000
Utilities expenses	167,500
Customer list	300,000
Loss due to an earthquake damage	618,000
Interest revenues		148,000
loss on operation of the disposed division	195,000
Legal and accounting expenses	47,000
Buildings Accumulated depreciation		280,000
Unearned revenues		215,000
Furniture and computers	350,000
Leasing liabilities		3,400,000
Share premium preference		675,000
Share premium treasury		180,000
Retained earnings	6,010,000
Accumulated revaluation surplus		220,000
Non-trading securities	5,575,000
Gains on currency exchange		140,000
Legal reserve		312,500
Share premium ordinary		2,000,000
Patent	960,000
Treasury shares (400,000 * 3)	1,200,000
Held to maturity investment	3,417,000
Salaries and wages expenses	1,180,000
Investment in preference shares	2,100,000
Allowance for doubtful accounts		60,000
Loss on disposal of Salmya Branch assets	324,000
Loss on sales of trading securities	81,500
Buildings to lease out	1,850,000

Additional Information that was not included in the trial balance:

• The number of ordinary shares is 10,000,000 shares authorized, 4,250,000 issued and 3,850,000 outstanding.
• There are 10 KD par, (10%), 200,000 authorized, issued and outstanding preference shares.
• 10% of the account receivables will be collected in 2022.
• The insurance policy was purchased on Jan 1^st 2020 for 160,000 KD and covers 4 years. One fourth of the amount was expensed as insurance expense during 2020 and the rest 120,000 will be expensed over the coming three years.
• 50,000 KD of the mortgage payable due during next year.
• 200,000 KD of the dividends declared foe preference shares
• 150,000 KD of the notes receivables due next year
• Salaries and wages expenses are 60% sales and 40% offices
• Depreciation expenses are 20% sales and 80% offices.
• Ending inventories was evaluated at 1,225,000 KD on Dec 31^st 2020
• 400,000 KD of the leasing liabilities due next year.
• Utilities expenses are 30% sales and 70% offices.
• 490,000 KD of the notes payable due next year.
• Fair value of trading securities on Dec 31^st 2020 is 1,615,000 KD
• Fair value of non-trading securities on Dec 31^st 2020 is 6,450,000 KD
• Goodwill was revalued during the period at 4,000,000 KD.
• Patent was impaired by 260,000 but it has not been recognized.
• The company is subject to 30% income tax on all items.

Required:

1. Prepare statement of financial position and statement of comprehensive income for ABC Company in good format and according to the requirements of IAS 1?