Q;b) Express Events Ltd uses the periodic inventory method. From the information provided, calculate the closing value of inventory using the First-In-First-Out method of valuation [see: Worksheet 2 Inventory]

You have been asked to prepare special purpose financial statements for Express Events Ltd (including accounting policies and notes) for the year ended 31 March 20x2. SCENARIO Express Events Ltd is a business specialising in party planning and event management. The balance date is 31 March and the shareholding in the company is as follows: Ms Josie Funtime Mr James Funtime 31/3/20x1 40,000 ordinary shares @$1 each 30,000 ordinary shares @$1 each 31/3/20x2 170,000 ordinary shares @$1 each 50,000 ordinary shares @$1 each All information is GST exclusive. i.Interest on the loan is 5% per year. The current portion of the loan is $32,000. ii.Interest earned on the ANZ Term Deposit accrues on a quarterly basis at 3.5% per year. Interest for the March 20x2 quarter is due to be received on 1 April 20x2. iii.Advertising expenses relates to a newspaper advertising contract that runs from 1 July 20x1 to 30 June 20x2. iv.In March 20x2, the business decided to lease an unused portion of the land and buildings to a web designer. The lease agreement states that rent is payable in advance and in March 20x2, Express Events Ltd received $4,522 rental for the months of April and May 20x2. V.The Rates invoice for the March 20x2 quarter of $2,100 is yet to be received. vi.Depreciation is to be calculated as follows: Land and Buildings -0% Computer Equipment - 40% Diminishing value Fixtures and Fittings - 20% Diminishing value Vehicle - Straight-line method -21%. The vehicle was purchased on 1 December 20x1. vii.In March 20x2 the company contracted B D Valuations Ltd to undertake a revaluation on the Land and Buildings. It was determined that the Land and Buildings should be revalued upwards by $55,000. viii.During the year a dividend of $30,000 (25c per ordinary share) was paid out of Retained Earnings. This has been already accounted for in the Unadjusted Trial Balance. Worksheet 1 - Trial Balance Express Events Ltd - 31/3/X2 Unadjusted Trial Balance DR CR 21,322.00 18,600.00 4,500.00 450,000.00 10,100.00 5,400.00 34,300.00 15,600.00 35,000.00 60,000.00 2,400.00 240,000.00 120,000.00 118,504.00 Bank Accounts Receivable Inventory Land and Buildings - at cost Computer Equipment - at cost Accumulated Depreciation - Computer Equipment Fixtures and Fittings - at cost Accumulated Depreciation - Fixtures and Fittings Vehicle - at cost Investment - ANZ Term Deposit Accounts Payable Loan (Repayable 1/4/2024) Share Capital Retained Earnings Revaluation Surplus Reserve Income - Sales of Beverages Income - Sales of Services Interest Income Rent Income Purchases Advertising Distribution Expenses General Expenses Insurance Expense Interest Expense Rates Expense Salaries and Wages Vehicle Expenses 29,000.00 288,545.00 1,075.00 4,522.00 14,820.00 1,200.00 2,600.00 35,800.00 3,600.00 9,000.00 5,300.00 115,004.00 3,900.00 825,046.001 825,046.00 Worksheet 2 - Inventory Josie has provided the following inventory movements for beverages for the year ended 20x2. Units 2,250 $ 2,000 1,500 01/04/20x1 May May Jul Aug Oct Nov March Opening balance Purchases Sales Sales Purchases Purchases Sales Sales Cost 2.00$ 1.90$ $ $ 2.10$ 2.15$ $ 800 3,200 $ 2,000$ 2,500 1,000 uuuuuuu Price 4,500 3,800 7,500 4,000 6,720 4,300 12,500 5,000 Worksheet 3 - Cash Flows Cash Flow Information: Receipts from customers Receipts from debtors Payments to IRD for income tax Depreciation for the period Interest paid Opening bank balance (overdraft) Interest accrued Loan repayment Dividends paid Shares issued Sale of old vehicle - which had a book value of Purchase of new vehicle Transfer excess cash to term deposit investment Payments to suppliers Payments to employees $ 300,000 14,945 5,700 8,070 9,000 (66,120) 12,000 10,000 30,000 50,000 5,000 4,000 35,000 60,000 67,003 65,800