Preparation of financial statements of comprehensive income, changes in equity and financial position Question 4 HK Ltd has prepared its draft trial balance to 30 June 20x1, which is shown below. $000 2.100 4,126 1,858 691 480 7.263 2.591 11.794 11.561 536 381.600 Trial balance at 30 June 20X1 5000 Freehold land Freehold buildings (cost $4,680,000) Plant and machinery (cost $3,096,000) Fixtures and fittings (cost $864,000) Goodwill Trade receivables Trade payables Inventory Bank balance Development grant received Profit on sale of freehold land Sales Cost of sales Administration expenses Distribution costs Directors' emoluments Bad debts Auditors' remuneration Hire of plant and machinery Loan interest Dividends paid during the year --preference Dividends paid during the year-ordinary 9% loan Share capital - preference shares (treated as equity) Share capital-ordinary shares Retained earnings 318,979 9,000 35.100 562 157 112 2,400 605 162 426 7200 3.600 5.400 6.364 407 376 407,376 The following information is available: (a) The authorised share capital is 4,000,000 9% preference shares of $1 each and 18,000,000 ordinary shares of 50 each (b) Provide for depreciation at the following rates Plant and machinery 20% on cost Fixtures and fittings 10% on cost m) Buildings 2% on cost Charge all depreciation to cost of sales. (c) Provide $5.348.000 for income tax (d) The loan was raised during the year and there is no outstanding interest accrued at the year-end. (e) Government grants of $85.000 have been received in respect of plant purchased during the year and are shown in the trial balance. One-fifth is to be taken into profit in the current year. of $200,000. These 04. Preparation of internal and published financial statemen trial balance. Since the end h the company's insurers. the end of the O During the year a fire took place at one of the company's depots, involving loss losses have already been written off to cost of sales shown in the trial bala financial year a settlement of $150,000 has been agreed with the company's (8) $500,000 of the inventory is obsolete. This has a realisable value of $250,000 (h) Acquisitions of property, plant and equipment during the year were: Plant $173.000 Fixtures $144,000 0 During the year freehold land which cost $720,000 was sold for $1,316,000. O A final ordinary dividend of 3c per share is declared and was an obligation befo together with the balance of the preference dividend. Neither dividend wa (6) The goodwill has not been impaired. () The land was revalued at the year-end at $2,500,000 tion before the year-end. vidend was paid at the year-end the year to 30 June 20X1 and relevant accounting standards Required: (a) Prepare the company's statement of comprehensive income for the year to a a statement of financial position as at that date, complying with the relevant acea in so far as the information given permits. (All calculations to nearest $000.) (b) Explain the usefulness of the schedule prepared in (a). Preparation of financial statements of comprehensive income, changes in equity and financial position Question 4 HK Ltd has prepared its draft trial balance to 30 June 20x1, which is shown below. $000 2.100 4,126 1,858 691 480 7.263 2.591 11.794 11.561 536 381.600 Trial balance at 30 June 20X1 5000 Freehold land Freehold buildings (cost $4,680,000) Plant and machinery (cost $3,096,000) Fixtures and fittings (cost $864,000) Goodwill Trade receivables Trade payables Inventory Bank balance Development grant received Profit on sale of freehold land Sales Cost of sales Administration expenses Distribution costs Directors' emoluments Bad debts Auditors' remuneration Hire of plant and machinery Loan interest Dividends paid during the year --preference Dividends paid during the year-ordinary 9% loan Share capital - preference shares (treated as equity) Share capital-ordinary shares Retained earnings 318,979 9,000 35.100 562 157 112 2,400 605 162 426 7200 3.600 5.400 6.364 407 376 407,376 The following information is available: (a) The authorised share capital is 4,000,000 9% preference shares of $1 each and 18,000,000 ordinary shares of 50 each (b) Provide for depreciation at the following rates Plant and machinery 20% on cost Fixtures and fittings 10% on cost m) Buildings 2% on cost Charge all depreciation to cost of sales. (c) Provide $5.348.000 for income tax (d) The loan was raised during the year and there is no outstanding interest accrued at the year-end. (e) Government grants of $85.000 have been received in respect of plant purchased during the year and are shown in the trial balance. One-fifth is to be taken into profit in the current year. of $200,000. These 04. Preparation of internal and published financial statemen trial balance. Since the end h the company's insurers. the end of the O During the year a fire took place at one of the company's depots, involving loss losses have already been written off to cost of sales shown in the trial bala financial year a settlement of $150,000 has been agreed with the company's (8) $500,000 of the inventory is obsolete. This has a realisable value of $250,000 (h) Acquisitions of property, plant and equipment during the year were: Plant $173.000 Fixtures $144,000 0 During the year freehold land which cost $720,000 was sold for $1,316,000. O A final ordinary dividend of 3c per share is declared and was an obligation befo together with the balance of the preference dividend. Neither dividend wa (6) The goodwill has not been impaired. () The land was revalued at the year-end at $2,500,000 tion before the year-end. vidend was paid at the year-end the year to 30 June 20X1 and relevant accounting standards Required: (a) Prepare the company's statement of comprehensive income for the year to a a statement of financial position as at that date, complying with the relevant acea in so far as the information given permits. (All calculations to nearest $000.) (b) Explain the usefulness of the schedule prepared in (a)