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Could someone please solve this problem regarding preparing financial statements? I will appreciate the help!!!!! Problem 1-Adjustments to financial statements (13 points The following is
Could someone please solve this problem regarding preparing financial statements? I will appreciate the help!!!!!
Problem 1-Adjustments to financial statements (13 points The following is the trial balance of Company A as at 31 December 2016: Shares Capital of S1.5 each Share Premium Redeemable 10 000 7% preference shares 28 000 13 000 8 000 Directors' Remuneration 7 700 4 300 Light and Heat Provision for doubtful debts Bad debts written off Building at costs Buiding, accumulated depreciation Land at costs Equipment at costs Equipment, accumulated depreciation Plant at costs Plant, accumulated depreciation Purchases/ Sales 1 200 295 000 88 000 102 400 38 600 90 000 170 000 12 400 31 000 24 400 335 000 7100 Trade Roceivables Trade Payables Inventory as at 01.01.2016 4 000 45 000 35 600 34 500 Debentures ( 8% interest ) Revaluation Reserves Retained Eamings Auditor fee Rent as at 01.01 2016 Dividends on common shares 1 300 1 700 3 800 797 500 797 500 The following additional information is available: I. 2. 3. Inventory at 31.12.2016 is valued at $21 400 Rent include $1 200 paid for the quarter ended 28.02.2017 Light and Heat for the quarter to 31 January 2017 of S 840 has not been accounted for The amounts shown in the trial balance for non-current assets are halances at 01.01.2016. Provision is required for dapreciation for the year ended 31.12.2016. The Company's depreciation methods are: Buildings: Straight-line over 50 years Plart:15% straight-line * 5. On 31.12 2016 the accountant received an official note that Land was revalued to $104 600 6. The provision for bad debts is to be adjusted to 10% ofthe trade receivables at the period end Additional bad debt occurred in the end of the year are accounted for $500 7. Discounts Received were provided for early payment in the amount of $900 8. The corporation tax on this year's profit of s4 800 9. The interest on long-term liability is cakculated at the yearly basis and is outstanding in the end of the year 10. The directors propose to declare a final dividend on the equity shares of S0.4 per share Task a)Prepare an Income Statement for the year ended 31.12.2016 (3 paints) b) Prepare a Statement of Change in Equity for the year ended 31.12.2016 (2 points) c)Prepare a Statement of Financial Position as at 31.12.2016(6 paints)Step by Step Solution
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