Assessment 1 - Part 1 Immers Part 1 - Income Statement due July 30th Assessment instructions Read the information below and answer the following question. You are a newly qualified Accounting Technician with Humbro Ltd, a toy manufacturer specialising in board games. The Finance Director has asked you to produce the draft financial statements for the year ended 31 December 2016. The trial balance, which has been extracted from the accounting system, and the information in the notes to the accounts are given below. You have been given a pro forma layout to assist you in your task. o Assessment 1 Part 1 Immersive Reader Humbro Ltd Trial Balance as at 31st December 2016 2000 F000 5,500 550 7,500 5.250 1,100 8,000 3,000 1,700 10,000 17.750 4,700 Ordinary Shares of t each Ordinary Shares dividend paid Trade Receivables Trade Payables Administration Expenses 10% Debentures Inventory at 1st January 2016 Distribution Costs Purchases Revenue Retained Profitat 1 January 2016 Land and Buildings at cost Plant and Machinery at cost Focture and Fittings at cost Commission Received Bank Land and Building (Accumulated Depreciation) Plant and Machinery (Accumulated Depreciation) Fixture and Fittings (Accumulated Depreciation) Investments Intangible Assets: Goodwill Investment Income Profit on disposal of discontinued operations 14,000 5,200 1,125 1,100 1,950 1,400 1,625 800 1.800 800 2,500 100 48,725 48,725 MacBook Pro Assement 1 - Part 1 E Immersive R 1 Notes to the Accounts Administration staff were awarded a bonus amounting to 250,000 at the end of December 2016. This bonus has not been paid yet and it should be classified as an administrative expense. 2 Distribution costs include 50,000 for marketing services which relate to the next financial year 3 Closing Inventory at 31 December 2016 was valued at 1,500,000 4 it is estimated that Corporation Tax of 850,000 will be payable on the profits for the year 5 Interest on the debentures for the full year should be provided. 6 The directors propose to provide for the depreciation of non-current assets for the year as follows: Land and Buildings 280,000 Plant and Machinery 325,000 Fixtures and Fittings 75,000 Assessment task - Part 1 You are required to produce an Income Statement as at 31 December 2016 (for internal use). Relevant working notes should be submitted. Pro forma Layout-Part Search Assessment 1 - Part 1 Income Statement for Year ended E000 E000 Revenue Cost of Sales: Gross profit Expenses: Profit/loss on disposal of operations Operating profit Finance income/investment income Finance costs Profit on ordinary activities before taxation Taxation Profit on ordinary activities after taxation and profit for the financial year Scottish Qualifications Authority Business Accounting (SCQF level 7) MacBook Pro