Prepare the Statement of Comprehensive Income for the year ended 28 February 2022.

INFORMATION

The trial balance, additional information and adjustments given below were extracted from the records of Metro Limited for the financial year ended 28 February 2022.

METRO LTD
PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022
	DEBIT	CREDIT
Balance sheet accounts section
ordinary share capital		2 200 000
Retained earnings		608 000
Land and building at cost	2 300 000
Equipment at cost	1 060 000
vehicles at cost	880 000
accumulated depreciation on equipment		440 000
accumulated depreciation on vehicles		220000
trading inventory	210000
debtors control	265000
provision for bad debts		15000
bank overdraft		70000
creditors control		325000
loan : Ria Bank (18% p.a)		250 000
South African Revenue Services (company tax)	130 000
Nominal accounts section
sales		4 580 000
Cost of sales	1 980 000
sales returns	130 000
advertising	140 000
stationery	50 000
bad debts	15 000
discounts allowed	20 000
discounts received		16 000
electricity and water	180 000
telephone	90 000
interest on overdraft	1 000
director's fees	240 000
audit fees	60 000
insurance	32 000
salaries	950 000
bank charges	13 000
rent income		112 000
municipal rates	90 000
	8 836 000	8 836 000

ADDITIONAL INFORMATION AND ADJUSTMENTS

1. According to physical stocktaking, the following were on hand on 28 February 2022:

1. 1.1 Trading inventory R200 000

2. 1.2 Stationery R3 000

2. Advertising includes a payment of R6 000 for six advertisements at R1 000 each that will be published monthly from January 2022 and June 2022.

3. Part of the building has been let to a tenant since 01 March 2020. Rent has been received up to 31 January 2022. Note: The rental increased by 10% on 01 December 2021.

4. On 28 February 2022 an amount of R1 200 was received from a debtor who was only able to pay 60% of his debt. The balance of his account must be written off. No entries were made for these transactions.

5. The provision for bad debts must be increased to R18 000.

6. Directors’ fees amount to R21 000 per month. Make the necessary adjustment.

7. The loan from Ria Bank was obtained on 01 February 2022. Provide for the outstanding interest on loan.

8. A notice from the municipality indicated that the municipal rates for the year ended 28 February 2022 was calculated at R50 per R1 000 of the value of the land and buildings. Make the necessary adjustment.

9. Provide for depreciation as follows:

1. 9.1 On vehicles at 20% per year using the diminishing balance method.

2. 9.2 On equipment, R106 000.

10. Based on the taxable income of the company, an amount of R6 114 is owed by the tax authority (South African Revenue Services) to Metro Limited for company tax.