Alpha plc prepares financial statements to 31 December each year. The companys trial balance at 31 December 2019 is as follows:

The following information is also available:

The buildings were acquired on 1 January 2011 and are depreciated using straight-line method over its useful life of 40 years. Machinery and equipment are depreciated at 25 percent per annum on the reducing balance basis. There is no residual value for building, machinery and equipment.

Alpha plc revalued the land at 31 December 2019 at 560,000.

Depreciation of buildings should be split 70:30 between administrative and distribution costs. Depreciation of machinery and equipment should be split 20:80 between administrative and distribution costs.

The cost of inventory at 31 December 2019 is 196,560, including goods with an original cost of 62,000 which have a net realisable value of 50,000.

Trade receivables include bad debts of 4,000 which should be written off. The provision for doubtful debts is provided at 2 percent of the trade receivables. Bad debts expenses are to be treated as administrative costs.

The 9% debenture was issued on 1 July 2019. Interest is payable half-yearly on 30 June and 31 December. The interest of the debenture for the year ended 31 December 2019 has not yet been accounted for.

Directors fees are to be treated as administrative costs. Wages and salaries should be split equally between administrative and distribution costs.

Cash dividends of 80,000 was declared on 1 October 2019. No entries have yet been made in relation to this issue.

The taxation for the year is estimated to be 40,000, due on 1 April 2020.

REQUIRED:

Part i

Prepare both the statement of comprehensive income for the year ended 31 December 2019 and the statement of financial position at 31 December 2019 for Alpha plc, in accordance with International Financial Reporting Standards.

Alpha plc prepares financial statements to 31 December each year. The companys trial balance at 31 December 2019 is as follows:

The following information is also available:

The buildings were acquired on 1 January 2011 and are depreciated using straight-line method over its useful life of 40 years. Machinery and equipment are depreciated at 25 percent per annum on the reducing balance basis. There is no residual value for building, machinery and equipment.

Alpha plc revalued the land at 31 December 2019 at 560,000.

Depreciation of buildings should be split 70:30 between administrative and distribution costs. Depreciation of machinery and equipment should be split 20:80 between administrative and distribution costs.

The cost of inventory at 31 December 2019 is 196,560, including goods with an original cost of 62,000 which have a net realisable value of 50,000.

Trade receivables include bad debts of 4,000 which should be written off. The provision for doubtful debts is provided at 2 percent of the trade receivables. Bad debts expenses are to be treated as administrative costs.

The 9% debenture was issued on 1 July 2019. Interest is payable half-yearly on 30 June and 31 December. The interest of the debenture for the year ended 31 December 2019 has not yet been accounted for.

Directors fees are to be treated as administrative costs. Wages and salaries should be split equally between administrative and distribution costs.

Cash dividends of 80,000 was declared on 1 October 2019. No entries have yet been made in relation to this issue.

The taxation for the year is estimated to be 40,000, due on 1 April 2020.

REQUIRED:

Part i

Prepare both the statement of comprehensive income for the year ended 31 December 2019 and the statement of financial position at 31 December 2019 for Alpha plc, in accordance with International Financial Reporting Standards.

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