7:23 PM Sat 10 Oct O 30%

7.23 PM sat 10 Oct Home Insert Week 3_38c76e8tac93tdcb592a8230b5974at4 Draw Design Transitions Animations Slide Show Further information: . The agency depreciates its buildings over 45 years using the straight line the Jl 2. 3. 4. 5. basis, and its equipment using the reducing balance basis at a rate of 25% per year. The depreciation for 20X7 has still to be accounted for. The insurance expenditure includes a prepayment of E15,OOO for the period up to 28 February 20X8. A pay increase was announced in January 20X8 and is to be applied from 1 December 20X7. The cost of the increase for 20X7 isE20,OOO. Inventories at 31 December 20X7 were E340,OOO. on 10 January a storm destroyed E150,OOO of the inventories. The Agency charges inventory used during the year to general expenses. On 15 December 20X7 a company that owed the Agency 25,000 went Buildings auildings Insurance at 1 .nnuary 20M bankrupt. It is unlikely that the amount owing will be recovered. From the information above, prepare a statement ot tinancial performance tor the Estate Management Agency for the year ended 31 December 20X7 and a statement of financial position (balance sheet) at that date. Slide 46 of 46 18,sco D Notes e 1.100 3,520 8.785 3,300 GI Comments