Question One: The following data extracted from the trial balance of ABC Company on Dec 31st 2020: Amount Financial Statement Item Amount Financial Statement item Buildings Cash Sales revenues Sales commission Travel expense - sale Equipment Account payable Goodwill Purchases Trading securities Account receivables License Audit fees Freight-in Repair expenses Purchases discount Beginning inventory Share capital - ordinary Advertising expenses Supplies Prepaid insurance Notes receivables Bonds payables Wages payable Dividends revenues Sales discount Trade payables Lands Delivery expenses Rent expenses Insurance expense Motor vehicles Revaluation surplus Share capital - preference Franchise Mortgage payable Dividends declared Land for speculations 1,200,000 320,000 16.000.000 120,000 75,000 840,000 420,000 3,000,000 6,400,000 1,460,000 810,000 475,000 90,000 85,000 76,000 128,000 1,487,500 4,250,000 630,000 112,000 120,000 1,650,000 5,000,000 | 62,000 243,000 145,000 88,000 3,050,000 313,000 94,000 40,000 1,550,000 150,000 2,000,000 1,450,000 900,000 700,000 650,000 Motor vehicles - Accumulated depreciations Depreciation expenses Purchases returns and allowance Interest expenses Gains on sale of lands Notes payable Equipment - accumulated depreciation Impairment loss - equipment Accumulated unrealized gains of non-trading securities Sales returns and allowance Customs and taxes - purchases Utilities expenses Customer list Loss due to an earthquake damage Interest revenues loss on operation of the disposed division | Legal and accounting expenses Buildings Accumulated depreciation Unearned revenues Furniture and computers Leasing liabilities Share premium - preference Share premium - treasury Retained earnings Accumulated revaluation surplus Non-trading securities Gains on currency exchange Legal reserve Share premium - ordinary Patent Treasury shares (400,000 * 3) Held to maturity investment Salaries and wages expenses Investment in preference shares Allowance for doubtful accounts Loss on disposal of Salmy Branch' assets Loss on sales of trading securities Buildings to lease out 180,000 630,000 96,000 1,150,000 455,000 2,890,000 440,000 260,000 265,000 215,000 1,045,000 167,500 300,000 618,000 148,000 195,000 47,000 280,000 215,000 350,000 3,400,000 675,000 180,000 ?? 220,000 5,575,000 140,000 312,500 2,000,000 960,000 1,200,000 3,417,000 1,180,000 2,100,000 60,000 324,000 81,500 1,850,000 Additional Information that was not included in the trial balance: - The number of ordinary shares is 10,000,000 shares authorized, 4,250,000 issued and 3,850,000 outstanding There are 10 KD par, (10%), 200,000 authorized, issued and outstanding preference shares. 10% of the account receivables will be collected in 2022. The insurance policy was purchased on Jan 1st 2020 for 160,000 KD and covers 4 years. One fourth of the amount was expensed as insurance expense during 2020 and the rest 120,000 will be expensed over the coming three years. 50,000 KD of the mortgage payable due during next year. 200,000 KD of the dividends declared foe preference shares 150,000 KD of the notes receivables due next year Salaries and wages expenses are 60% sales and 40% offices - Depreciation expenses are 20% sales and 80% offices. Ending inventories was evaluated at 1,225,000 KD on Dec 31st 2020 400,000 KD of the leasing liabilities due next year. Utilities expenses are 30% sales and 70% offices. 490,000 KD of the notes payable due next year. Fair value of trading securities on Dec 31st 2020 is 1,615,000 KD Fair value of non-trading securities on Dec 31st 2020 is 6,450,000 KD Goodwill was revalued during the period at 4,000,000 KD. - Patent was impaired by 260,000 but it has not been recognized. - The company is subject to 30% income tax on all items. Required: 1. Prepare trial balance for ABC Company on Dec 31st 2020 and calculate retained earnings beginning balance? 2. Prepare statement of comprehensive income, retained earnings statement and statement of financial position for ABC Company in good format and according to the requirements of IAS 1? Question One: The following data extracted from the trial balance of ABC Company on Dec 31st 2020: Amount Financial Statement Item Amount Financial Statement item Buildings Cash Sales revenues Sales commission Travel expense - sale Equipment Account payable Goodwill Purchases Trading securities Account receivables License Audit fees Freight-in Repair expenses Purchases discount Beginning inventory Share capital - ordinary Advertising expenses Supplies Prepaid insurance Notes receivables Bonds payables Wages payable Dividends revenues Sales discount Trade payables Lands Delivery expenses Rent expenses Insurance expense Motor vehicles Revaluation surplus Share capital - preference Franchise Mortgage payable Dividends declared Land for speculations 1,200,000 320,000 16.000.000 120,000 75,000 840,000 420,000 3,000,000 6,400,000 1,460,000 810,000 475,000 90,000 85,000 76,000 128,000 1,487,500 4,250,000 630,000 112,000 120,000 1,650,000 5,000,000 | 62,000 243,000 145,000 88,000 3,050,000 313,000 94,000 40,000 1,550,000 150,000 2,000,000 1,450,000 900,000 700,000 650,000 Motor vehicles - Accumulated depreciations Depreciation expenses Purchases returns and allowance Interest expenses Gains on sale of lands Notes payable Equipment - accumulated depreciation Impairment loss - equipment Accumulated unrealized gains of non-trading securities Sales returns and allowance Customs and taxes - purchases Utilities expenses Customer list Loss due to an earthquake damage Interest revenues loss on operation of the disposed division | Legal and accounting expenses Buildings Accumulated depreciation Unearned revenues Furniture and computers Leasing liabilities Share premium - preference Share premium - treasury Retained earnings Accumulated revaluation surplus Non-trading securities Gains on currency exchange Legal reserve Share premium - ordinary Patent Treasury shares (400,000 * 3) Held to maturity investment Salaries and wages expenses Investment in preference shares Allowance for doubtful accounts Loss on disposal of Salmy Branch' assets Loss on sales of trading securities Buildings to lease out 180,000 630,000 96,000 1,150,000 455,000 2,890,000 440,000 260,000 265,000 215,000 1,045,000 167,500 300,000 618,000 148,000 195,000 47,000 280,000 215,000 350,000 3,400,000 675,000 180,000 ?? 220,000 5,575,000 140,000 312,500 2,000,000 960,000 1,200,000 3,417,000 1,180,000 2,100,000 60,000 324,000 81,500 1,850,000 Additional Information that was not included in the trial balance: - The number of ordinary shares is 10,000,000 shares authorized, 4,250,000 issued and 3,850,000 outstanding There are 10 KD par, (10%), 200,000 authorized, issued and outstanding preference shares. 10% of the account receivables will be collected in 2022. The insurance policy was purchased on Jan 1st 2020 for 160,000 KD and covers 4 years. One fourth of the amount was expensed as insurance expense during 2020 and the rest 120,000 will be expensed over the coming three years. 50,000 KD of the mortgage payable due during next year. 200,000 KD of the dividends declared foe preference shares 150,000 KD of the notes receivables due next year Salaries and wages expenses are 60% sales and 40% offices - Depreciation expenses are 20% sales and 80% offices. Ending inventories was evaluated at 1,225,000 KD on Dec 31st 2020 400,000 KD of the leasing liabilities due next year. Utilities expenses are 30% sales and 70% offices. 490,000 KD of the notes payable due next year. Fair value of trading securities on Dec 31st 2020 is 1,615,000 KD Fair value of non-trading securities on Dec 31st 2020 is 6,450,000 KD Goodwill was revalued during the period at 4,000,000 KD. - Patent was impaired by 260,000 but it has not been recognized. - The company is subject to 30% income tax on all items. Required: 1. Prepare trial balance for ABC Company on Dec 31st 2020 and calculate retained earnings beginning balance? 2. Prepare statement of comprehensive income, retained earnings statement and statement of financial position for ABC Company in good format and according to the requirements of IAS 1