Additional information:

(1) All items of PPE except office buildings are bought on 1 January 2021. Depreciation charges for the year should be calculated at 10% on cost PPE excl. buildings and at 2% on book value for buildings.

(2) Office buildings are to be revaluated to $700,000

(3) The income tax for the year is evaluated as $3,900

(4) Research and development costs include 50% of pure research and 50% meet certain criteria that indicate that future economic benefits are probable

(5) Receivables totalling $3,100 are to be written off

(6) Allowance for receivables should be created as 1% of net trade receivables

(7) Alphas directors made the following decisions during the year ended 31 December 2021: It disposed of all of its outlets in country A. A decision was also made to close down a regional office, which was communicated to the employees before the year-end. 50 employees would be retrained and kept within Alpha at a cost of $7,000, the others took redundancy and will be paid $25,000.

(8) The debentures issue during the year took place on 1 July2021, and all interest for the year should be accrued

(9) During the inventory count on 31 December, some goods which had cost $8,000 were found to be damaged. In February 2022 the damaged goods were sold for $8,100 by an agent who received a 9% commission out of the sale proceeds

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

12 600 980 V8 The trial balance of Alfa shows the following balances at 31 December 2021: Dr Cr 5000 S000 Ordinary share capital (500,000 12591 shares) General reserve 261 Stationery Cash in hand 2 Furniture and fittings (cost) 100 Sales revenue 12971 office buildings (cost) Office buildings (aggregate depreciation) 50 Cost of goods sold Cash 356 Accounts receivable 350 10% debentures (payable on 01 342 December 2031) Trade accounts payable Other receivables 12 Allowance for receivables (OL 40 January 2021) Costs for marketing campaign 35 Finance cost 22 Property tax payable Investment in Gazprom 92 Revaluation surplus Share premium account Bank overdraft Warehouse buildings 381 Equipment and vehicles Research and development 303 28 34 31 3001 6 140 costs 3385 3385 12 600 980 V8 The trial balance of Alfa shows the following balances at 31 December 2021: Dr Cr 5000 S000 Ordinary share capital (500,000 12591 shares) General reserve 261 Stationery Cash in hand 2 Furniture and fittings (cost) 100 Sales revenue 12971 office buildings (cost) Office buildings (aggregate depreciation) 50 Cost of goods sold Cash 356 Accounts receivable 350 10% debentures (payable on 01 342 December 2031) Trade accounts payable Other receivables 12 Allowance for receivables (OL 40 January 2021) Costs for marketing campaign 35 Finance cost 22 Property tax payable Investment in Gazprom 92 Revaluation surplus Share premium account Bank overdraft Warehouse buildings 381 Equipment and vehicles Research and development 303 28 34 31 3001 6 140 costs 3385 3385