Question one The following records have been taken from the trial balance of National Art Gallery for the year ended 31 December 2020 Debits $000 Buildings 6 342 Inventories at 31 December 2020 1 223 Receivables 100 Short term investments 90 Cash 420 Staff Costs 1 250 Electricity 30 Office stationery 15 Insurance 345 Bank interest charges 5 Total 9 820 Credits Buildings Accumulated depreciation 2 162 Payables 369 Long term loans 400 Accumulated surpluses 840 Investment income 20 Reserves 142 Revenue from admissions 376 Grant for staffing 40 Donations 25 Other revenue 46 Government grant for operating expenses 1 400 Capital contributed by government 4 000 Total 9 820 Additional information 1. Depreciation has still to be accounted for. National Arts Gallery depreciates its assets over 40 Years using a straight line basis. Exhibits are included in the trial balance as the art gallery has not been able to determine the realistic value for the majority of the items. 2. On October 1 2020 National Art Gallery was given permission to take a long term loan of $400 000 in order to acquire some artefacts of national significance. The loan liability has been recognised in the trial balance. The loan interest is payable when the loan itself is to be repaid at the end of ten years and the interest rate to be applied is 8%. The artefacts have not yet been purchased. 3. The insurance expenditure included in the trial balance has been paid for the period from 1 January 2020 to 28 28 February 2021. 4. A pay increase was announced in December 2020 and is to be applied from 1 November 2020. The cost of the increase for 2020 is $60 000 but this was not paid to employees until January 2021. 5. National Art Gallery applies the Accruals basis of accounting. Required Prepare a statement of financial performance for National Art Gallery for the year ended 31 December 2020. [25]