Exercise 2.7: Compass Museum (Statement of financial performance) The following records have been taken from the trial balance of Compass Museum for the year ended 31 December 20X0. C000 C'000 Buildings 6.342 Buildings accumulated depreciation 2.162 Inventories at 31 December 20x0 1223 Receivables 100 Short-term investments 90 Cash 420 Payables 369 Long term loans 400 Accumulated surpluses 840 Staff costs 1.250 Electricity 30 Office stationery, etc 15 Insurance 345 Bank interest charges 5 Investment income 20 Reserves 142 376 Revenue from admission charges Grant for staff training Donations Other revenue Government grant for operating expenses Capital contributed by government 25 46 1.400 4.000 9,820 9,820 Further information: 1. Depreciation has still to be accounted for. The museum depreciates its assets over 40 years using the straight line basis. Exhibits are not included in the trial balance as the museum has not been able to determine a realistic value for the majority of the items. 2. On 1 October 20x0 the museum was given permission to take on a long term loan of 400,000 in order to acquire some artefacts of national significance. The loan liability has been recognised in the trial balance. The loan interest is payable when the loan itself is to be repaid at the end of ten years and the interest rate to be applied is 8% The artefacts have not yet been purchased. 3. The insurance expenditure included in the trial balance has been paid for the period from 1 January 20x0 to 28 February 20X1. 4. A pay increase was announced in December 20X0 and is to be applied from 1 November 20X0. The cost of the increase for 20X0 is 60,000 but this was not paid to employees until January 20X1. From the information above, prepare a statement of financial position for Compass Museum for the year ended 31 December 20X0. Please note that you do not need to use all the figures in this trio balance some of them are only relevant to the statement of financial position