On 31 December 2021 the company signed a 100000 Pounds contract with Unix Ltd to build a bonded warehouse in Norton in 2022 . The project is to be funded 50% preference shares and 50% internal funds. Question 4 (25 Marks) Quadex Ltd is an oil prospecting company supplier of heavy duty equipment. An extract of its nominal ledger as at 31 December 2021 is as follows The following additional information is available: 1. The cost of Land is $800000. Due to the rising price of land in that area the company has decided to change its accounting polic to one of revaluation. At 31 December 2021 the land was valued at $1200000. There was no material change in the value of the buildings. The depreciation charge for the year for buildings has been correctly calculated as $40000 and should be included in administrative expenses 2. On 1 January 2021 the company entered into a 3-year lease for a number of drilling machines at a cost of $5000 per annum payable in advance. The computers are expected to be scrapped at the end of the three-year period. The computers had a fair value of $14250 at the inception of the lease. Quadex Ltd is responsible for the insurance and pays an outside contractor to service the drilling machines. The interest rate implicit in the lease is 7% per annum and the present value of the lease payments at the inception of the lease was $14040. The only accounting entries made in respect of the lease was to debit the cost of fixtures and fittings with first payment made $5000 and credit cash The depreciation charge for the year for fixtures and fittings has been correctly calculated as $10600 based on the figures in the nominal ledger and should be presented in administrative expenses. 3. Revenue consists of consultation fees and courses run for staff of clients. At the year end, fees $25000 had been received and included in revenue in respect of a course that was to be delivered in January 2022. 4. The closing inventory was valued at $155000. However, included in the year-end inventory count was $5000 in relation to training material for which a new edition was published shortly after year end. The 2012 materials cannot be used in 2022. 5. The debentures were issued in 2018 and redeemable in 2025. The 2021 interest on the debentures remains unpaid at the year end. No accounting journals have been made for this. 6. The income tax liability for the year ended 31 December 2021 has been estimated at $180 000 . Required Prepare the Statement of profit or loss and other comprehensive income for the vear ended 31 December 2021 (two statement format) and the notes thereon in accordance with IFRS. (25 Marks) (Expenses should be classified by function) On 31 December 2021 the company signed a 100000 Pounds contract with Unix Ltd to build a bonded warehouse in Norton in 2022 . The project is to be funded 50% preference shares and 50% internal funds. Question 4 (25 Marks) Quadex Ltd is an oil prospecting company supplier of heavy duty equipment. An extract of its nominal ledger as at 31 December 2021 is as follows The following additional information is available: 1. The cost of Land is $800000. Due to the rising price of land in that area the company has decided to change its accounting polic to one of revaluation. At 31 December 2021 the land was valued at $1200000. There was no material change in the value of the buildings. The depreciation charge for the year for buildings has been correctly calculated as $40000 and should be included in administrative expenses 2. On 1 January 2021 the company entered into a 3-year lease for a number of drilling machines at a cost of $5000 per annum payable in advance. The computers are expected to be scrapped at the end of the three-year period. The computers had a fair value of $14250 at the inception of the lease. Quadex Ltd is responsible for the insurance and pays an outside contractor to service the drilling machines. The interest rate implicit in the lease is 7% per annum and the present value of the lease payments at the inception of the lease was $14040. The only accounting entries made in respect of the lease was to debit the cost of fixtures and fittings with first payment made $5000 and credit cash The depreciation charge for the year for fixtures and fittings has been correctly calculated as $10600 based on the figures in the nominal ledger and should be presented in administrative expenses. 3. Revenue consists of consultation fees and courses run for staff of clients. At the year end, fees $25000 had been received and included in revenue in respect of a course that was to be delivered in January 2022. 4. The closing inventory was valued at $155000. However, included in the year-end inventory count was $5000 in relation to training material for which a new edition was published shortly after year end. The 2012 materials cannot be used in 2022. 5. The debentures were issued in 2018 and redeemable in 2025. The 2021 interest on the debentures remains unpaid at the year end. No accounting journals have been made for this. 6. The income tax liability for the year ended 31 December 2021 has been estimated at $180 000 . Required Prepare the Statement of profit or loss and other comprehensive income for the vear ended 31 December 2021 (two statement format) and the notes thereon in accordance with IFRS. (25 Marks) (Expenses should be classified by function)