Question on Balance Sheets, Income Statements and Statement of Changes in Equity

mining uiar Daian TUI Turray TUI U yuar Urugu JUUIPEI ZUZ TU TIGVE WOOTY vor u financial statements. Trial Balance as at 30th April 2020 100,000 400,000 800,000 160,000 2,696,996 827,324 141,300 114,592 Share capital (1) Share premium account Factory cost Factory depreciation as at 30.4.20 PPE cost PPE accumulated depreciation at 30.4.19 Opening inventory Trade receivables Bank Trade payables Loan Deferred tax Revenue Purchases Production costs Administrative costs Distribution costs Provisions Factory depreciation Dividend Income tax Suspense 14,095 132,543 80,000 23,040 1,710,102 415,180 86,148 139,872 67,588 27,500 32,000 50,000 3,800 1,000 3,479,404 1,064,272 Retained earnings b/f 4,543,676 4,543,676 4,543,678 4,543,676 MacBook Air 1. On 1st May 2019 Murray had a 1 for 5 bonus issue to utilise some of the share premium account. On 30th April 2020 the company had a 1 for 8 rights issue at a price of 3.50. The rights were fully subscribed. No entries have yet been made to reflect either of these issues. 2. Closing inventory was initially valued at a cost of 110,340. Included within that figure are some items that cost 7,500. Due to obsolescence the sales director estimated at the reporting date that these would be sold for 2,000. On 10th May 2020, before the financial statements were approved, these items were sold for 1,500. 3. The tax expense for the year is 50,464. The balance on the trial balance represents an overprovision of the previous year's tax liability 4. The deferred tax liability needs to be decreased to 25,700. 5. On 1st May 2019 Murray plc disposed of some old machinery for 1,000. The machinery had a cost of 4,500 and accumulated depreciation of 3,200. The only entry made with respect to this disposal so far is to record the cash. Any profit or loss on disposal should be posted to cost of sales 6. Plant and machinery is depreciated at 15% reducing balance. All depreciation should be charged to cost of sales. The factory depreciation has already been calculated and reflected in the trial balance. 7. On 15th April 2020, the government passed legislation that required that from 1st September 2020 the delivery vans used by Murray would require additional safety equipment to be fitted. The directors have estimated the cost of the equipment to be 25,000. There is also an outstanding legal claim against the company at the year end for breaking environmental legislation. The company's lawyer has advised that the fine will probably be 2,500. The directors have provided for both of these amounts, posting the total expense to distribution costs. 8. Murray plc sold goods to a customer for 7,497. The customer was given two year's interest free credit. The full amount was recorded in revenue when the goods were delivered on 1st May 2019. Interest rates are 5% 9. On 1st May 2019, Murray issued 100,000 of 5 year bonds for 80,000 before allowing for 3,000 of issue costs. The bond carries a coupon rate of 2% and has an effective interest rate of 7.72%. The 80,000 was recorded in the trial balance and debited to the cash account. No further entries have yet been made with respect to this loan. Requirements Taking into account all the information provided: 1. Prepare a Statement of profit or loss for the year ended 30th April 2020 2. Prepare a Statement of changes in equity for the year ended 30th April 2020 3. Prepare a Statement of financial position as at 30th April 2020 (Total Question 1: 35 marks) There are 6 marks available for the format of the Statement of profit or loss, Statement of changes in equity and Statement of financial position