2,601,300 2,601,300 Additional notes: i Depreciation is to be charged on the building at 8% reducing balance, and 10% straight line for the equipment u. Goodwill should be written down by 25% ii. Office expenses is owing by S9,000, while staff costs is prepaid by $10,200 iv. The following items of expense should be apportioned as follows: Expense Office expenses Staff costs Management fees Depreciation charges Admin 90% 40% 50% 75% Sell & Dist. 10% 60% 50% 259. 2. vi VII. Corporation tax is estimated at $18,500 Transfer $35,000 from profits to the general reserves There was a new issue of 75,000 ordinary shares at par value, the amount collected was $90,000 Vill. The full preference shares dividend will be honoured Required: Prepare the following financial statements for Pentagon Ltd Statement of profit or loss (including EPS) Statement of changes in equity Statement of financial position extract showing NON CURRENTASSETS ON December 31, 2019. DR 440,000 186,000 270,000 22,000 33,650 1,278,000 102,000 38,000 22,500 904,200 450,000 DETAILS Building Goodwill Ordinary share capital @ 80.60 Debtors Rent received Sales Staff costs Management fees Retained earnings Cost of sales 2% Preference share capital @ $1.50 Closing stock Office expenses Provision for depreciation on equipment 4% Debenture Creditors 7% Mortgage Equipment Interim ordinary shares dividend General reserves Land Debenture interest Mortgage interest Provision for depreciation on building Bank 87.000 27,400 48,000 156,000 39,650 126,000 212.000 17,300 95,000 $34,000 2.700 6.200 29,000 76,000 2,601,300 2,601,300 2,601,300 2,601,300 Additional notes: i Depreciation is to be charged on the building at 8% reducing balance, and 10% straight line for the equipment u. Goodwill should be written down by 25% ii. Office expenses is owing by S9,000, while staff costs is prepaid by $10,200 iv. The following items of expense should be apportioned as follows: Expense Office expenses Staff costs Management fees Depreciation charges Admin 90% 40% 50% 75% Sell & Dist. 10% 60% 50% 259. 2. vi VII. Corporation tax is estimated at $18,500 Transfer $35,000 from profits to the general reserves There was a new issue of 75,000 ordinary shares at par value, the amount collected was $90,000 Vill. The full preference shares dividend will be honoured Required: Prepare the following financial statements for Pentagon Ltd Statement of profit or loss (including EPS) Statement of changes in equity Statement of financial position extract showing NON CURRENTASSETS ON December 31, 2019. DR 440,000 186,000 270,000 22,000 33,650 1,278,000 102,000 38,000 22,500 904,200 450,000 DETAILS Building Goodwill Ordinary share capital @ 80.60 Debtors Rent received Sales Staff costs Management fees Retained earnings Cost of sales 2% Preference share capital @ $1.50 Closing stock Office expenses Provision for depreciation on equipment 4% Debenture Creditors 7% Mortgage Equipment Interim ordinary shares dividend General reserves Land Debenture interest Mortgage interest Provision for depreciation on building Bank 87.000 27,400 48,000 156,000 39,650 126,000 212.000 17,300 95,000 $34,000 2.700 6.200 29,000 76,000 2,601,300 2,601,300