make adjustments and complete the financial statements ( balance sheet income statement cash flow) for the for both years

(D) The income tax rate is 25%, and the corporation tax rate is 331/3 o. (E) The foreign exchange bank account is kept at National Commercial Bank, the salaries bank account is kept at Citibank and the general bank account is kept at Bank of Nova Scotia. (F) Round all calculations to the nearest $1,000. (G) The interest income and the dividend income were received net of income tax. Only the net amounts received were reflected in the accounts. (H) The allowance for bad debt is a specific allowance. (I) The issue price for each ordinary share is $1. The minutes of the last board meeting indicated that the board had unanimously agreed to increase the authorized share capital of the company from 10,000,000 ordinary shares to 20,000,000 ordinary shares. The increase is necessary because the company intends to have a 2 to 1 rights issue in June 2018. The additional ordinary shares will rank pari passu with the existing ordinary shares of the company. (J) The corporation tax for the current year is estimated at $1,483,000 by the tax accountant, after all adjustments were made. The corporation tax is not yet reflected in the accounts. (K) Corporation tax under provision for the year ended October 31, 2016 amounted to $5,000. The information about the under provision was not received until september 2017 . The under provision is not yet reflected in the accounts. (L) Transactions in foreign currencies have been converted at the rates of exchange ruling at the dates of those transactions and foreign currency bank balances should be translated at the rates of exchange ruling on that date. (M) During the financial year ended October 31, 2017, two (2) motor vehicles were acquired. On November 1, 2016, one (1) motor vehicle was acquired at a capitalised cost of $600,000 under a finance lease arrangement. The finance lease period is three (3) years. The other motor vehicle was acquired on October 31,2017 at a capitalised cost of $600,000. The payment for this motor vehicle was made from the general bank account. The payment is not yet reflected in the accounts. (N) On October 30, 2017 the valuation of land and buildings by Kirstine and Associates, professional valuators, based on current market prices revealed a value of $8,600,000. The revaluation is not yet reflected in the accounts. (0) Short term investments comprise: $400,000 fixed deposit that will mature in 30 days, and $190,000 that will mature in 151 days. (P) Depreciation is calculated on property, plant and equipment using the straight line method of depreciation at rates estimated to write off the assets over their expected useful lives as follows: Eurniture&fittingsComputerequipmentMotorvehiclesLand&buildings10%20%20%2&2% The depreciation charge for the current year: The accounting clerk charged depreciation on the motor vehicle acquired under the finance lease arrangement using the straight line method, at a rate of 20%. No depreciation was charged on the motor vehicle acquired on the last day of the financial year. (Q) Directors' emoluments include $260,000 for directors' fees. The directors retiring by rotation pursuant to article 90 of the Articles of Association are Mr. Frank Rose, Miss Demi Jordan, and Miss Monique Sharpe who being eligible offer themselves for re-election. (R) Deferred taxation for the income statement should be decreased by $5,000 for the financial year ended october 31 , 2017. The adjustment is not yet reflected in the accounts. (S) At the October 24, 2017 Board of Directors meeting the directors made a decision to sell some of the company's long (T) Inventories are stated at the lower of cost and net realisable (V) Finance lease obligation future payments for the years ending: The finance lease commenced on November 1, 2016. A lease payment of $320,000 was made on October 31,2017 . The lease payment included finance charges amounting to $120,000. The interest rate on the finance lease is 208 . (W) During the current financial year, a lawsuit was filed against the company by a customer. The customer is claiming damages amounting to $386,000 arising out of an alleged breach of contract by the company to supply computers to the customer. The company's lawyers Crow \& Grant are of the opinion that the plaintiff's (customer's) claim against the company is unlikely to succeed. (x) The $20,000 donation was allocated to Wolmers Girls School (80%) (Computer Laboratory) and to a Christmas treat (20\%) for children living in Downtown Kingston. (Y) At October 31, 2017 commitments for capital expenditure not contracted for and for which no provision has been made in the accounts amounted to $2,600,000. (Z) A Mandeville customer made a complaint in writing on October 28, 2017 about the poor quality of a hard drive replacement. On October 31, 2017, the President of Valentine computer Limited made a verbal commitment to the customer to install a new hard drive at a cost of $10,000. (D) The income tax rate is 25%, and the corporation tax rate is 331/3 o. (E) The foreign exchange bank account is kept at National Commercial Bank, the salaries bank account is kept at Citibank and the general bank account is kept at Bank of Nova Scotia. (F) Round all calculations to the nearest $1,000. (G) The interest income and the dividend income were received net of income tax. Only the net amounts received were reflected in the accounts. (H) The allowance for bad debt is a specific allowance. (I) The issue price for each ordinary share is $1. The minutes of the last board meeting indicated that the board had unanimously agreed to increase the authorized share capital of the company from 10,000,000 ordinary shares to 20,000,000 ordinary shares. The increase is necessary because the company intends to have a 2 to 1 rights issue in June 2018. The additional ordinary shares will rank pari passu with the existing ordinary shares of the company. (J) The corporation tax for the current year is estimated at $1,483,000 by the tax accountant, after all adjustments were made. The corporation tax is not yet reflected in the accounts. (K) Corporation tax under provision for the year ended October 31, 2016 amounted to $5,000. The information about the under provision was not received until september 2017 . The under provision is not yet reflected in the accounts. (L) Transactions in foreign currencies have been converted at the rates of exchange ruling at the dates of those transactions and foreign currency bank balances should be translated at the rates of exchange ruling on that date. (M) During the financial year ended October 31, 2017, two (2) motor vehicles were acquired. On November 1, 2016, one (1) motor vehicle was acquired at a capitalised cost of $600,000 under a finance lease arrangement. The finance lease period is three (3) years. The other motor vehicle was acquired on October 31,2017 at a capitalised cost of $600,000. The payment for this motor vehicle was made from the general bank account. The payment is not yet reflected in the accounts. (N) On October 30, 2017 the valuation of land and buildings by Kirstine and Associates, professional valuators, based on current market prices revealed a value of $8,600,000. The revaluation is not yet reflected in the accounts. (0) Short term investments comprise: $400,000 fixed deposit that will mature in 30 days, and $190,000 that will mature in 151 days. (P) Depreciation is calculated on property, plant and equipment using the straight line method of depreciation at rates estimated to write off the assets over their expected useful lives as follows: Eurniture&fittingsComputerequipmentMotorvehiclesLand&buildings10%20%20%2&2% The depreciation charge for the current year: The accounting clerk charged depreciation on the motor vehicle acquired under the finance lease arrangement using the straight line method, at a rate of 20%. No depreciation was charged on the motor vehicle acquired on the last day of the financial year. (Q) Directors' emoluments include $260,000 for directors' fees. The directors retiring by rotation pursuant to article 90 of the Articles of Association are Mr. Frank Rose, Miss Demi Jordan, and Miss Monique Sharpe who being eligible offer themselves for re-election. (R) Deferred taxation for the income statement should be decreased by $5,000 for the financial year ended october 31 , 2017. The adjustment is not yet reflected in the accounts. (S) At the October 24, 2017 Board of Directors meeting the directors made a decision to sell some of the company's long (T) Inventories are stated at the lower of cost and net realisable (V) Finance lease obligation future payments for the years ending: The finance lease commenced on November 1, 2016. A lease payment of $320,000 was made on October 31,2017 . The lease payment included finance charges amounting to $120,000. The interest rate on the finance lease is 208 . (W) During the current financial year, a lawsuit was filed against the company by a customer. The customer is claiming damages amounting to $386,000 arising out of an alleged breach of contract by the company to supply computers to the customer. The company's lawyers Crow \& Grant are of the opinion that the plaintiff's (customer's) claim against the company is unlikely to succeed. (x) The $20,000 donation was allocated to Wolmers Girls School (80%) (Computer Laboratory) and to a Christmas treat (20\%) for children living in Downtown Kingston. (Y) At October 31, 2017 commitments for capital expenditure not contracted for and for which no provision has been made in the accounts amounted to $2,600,000. (Z) A Mandeville customer made a complaint in writing on October 28, 2017 about the poor quality of a hard drive replacement. On October 31, 2017, the President of Valentine computer Limited made a verbal commitment to the customer to install a new hard drive at a cost of $10,000