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Question 1 Part A The following information relates to Pear pic for the year ended 31 December 20X6: Profit before tax amounted to 138 000,

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Question 1 Part A The following information relates to Pear pic for the year ended 31 December 20X6: Profit before tax amounted to 138 000, after taking into account the following: Dividends received of 8 000 and dividend income accrued of 1 600. Operating expenses paid of 40 000 and operating expenses accrued of 8 000. Interest paid of 2 400. A dividend of 12 000 was declared on 15 February 20x6 in respect of the year ended 31 December 20X5. In addition, a dividend of 14 000 was declared on 15 February 20X7 in respect of the year ended 31 December 20X6. Any dividends declared are usually paid out shortly afterwards. Information relating to tax includes the following: The HMRC ledger account had been partially drawn up. After taking into account the opening balance and the provisional tax payments made during the year, the account had a debit balance of 18,600 at 31 December 20X6. However, no postings had been made for the under or over provision in respect of the 20x5 year and the current tax expense for the 20x6 year. The HMRC account had a debit balance of 18 600 at 31 December 20X6 (after taking into account provisional tax payments made during the year but before accounting for the under or over provision in respect of the 20x5 year and the current tax expense for the 20x6 year). An estimated current tax expense of 30 000 was provided when preparing the financial statements for the year ended 31 December 20X5. The amount owing to the tax authorities for the 20x5 year was assessed during 20X6 and amounts to 31 800. Taxation for the 20x6 year has not yet been calculated. All income earned is taxable and all expenses incurred are deductible, except for entertainment expenses of 5 000 (included within the operating expenses). The dividend income accrued is taxed in the year of accrual and the operating expenses accrued are deductible in the year of accrual. The corporate tax rate is 19% on taxable profits. Prepare the statement of profit or loss of Pear plc for the year ended 31 December 20X6 (starting with the gross profit, which is to be determined)

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