Question1 The following list of account balances relate to Zanger plc at 31 December 20X8 Sales revenue Cost of sales Distribution costs Administrative expenses Operating lease rentals Loan interest paid Dividends paid Property at cost Plant and equipment at cost 458,450 185,050 28,700 15,000 20,000 2,000 12,000 200,000 154,800 Plant and equipment 34,800 Development expenditure (note c) Proceeds on disposal of plant & equipment Trade receivables Inventories at 31 December 20X8 Cash and bank Trade payables Taxation - over provision in 20X7 Equity shares at 50c each Share premium 8% loan notes (2013) Retained earnings at January 20X8 30,000 55,000 55,000 28,240 120,660 29,400 2,200 100,000 50,000 50,000 851450 851450 The following notes are relevant: a) The property shown on the trial balance was acquired on 1 January 20X8 for 200,000 For the purpose of calculating depreciation only, this property has been analysed into the following elements: Useful economic life Unlimited 50 years Land 150,000 50,000 .Buildings Depreciation should be applied on the property above on the straight line basis and charged to production. Depreciation on plant and machinery is at a rate of 20% on the reducing balance basis and should be charged to cost of sales. Zanger plc's policy is to charge a full years depreciation in the year of acquisition and none in the year of disposal b) An item of plant was disposed of on 30 September 20X8 for 55,000. No other entry apart from its sale proceeds has been made in the books of Zanger plc in respect of the disposal. The item disposed of had originally cost 80,000 and had a carrying value of 51,200 on the date of disposal. c) The figure for development expenditure in the list of account balances represents amounts deferred in previous years in respect of the development of a new product. Unfortunately, during the current year, the government introduced legislation which bans this type of product resulting in its value being impaired to zero. This has yet to be reflected in the financial statements of Zanger plc. d) Zanger plc is being sued by an employee who lost a limb in an accident while at work on 15 March 20X8. In a recently decided case where a similar injury was sustained a settlement figure of 130,000 was awarded by the court. No entry has yet been recorded in relation to this issue in the trial balance. )A provision for income tax for the year to 31 December 20X8 of 20,000 is required f The directors proposed a final dividend of 30 cent per share on 14 January 20X9. g) Interest paid is for the six month period to 30 June 20X8. Required: For the year ending 31 December 20X8, prepare the following for Zanger plc: i) Statement of Profit or Loss and Other Comprehensive Income. ii) Statement of Financial Position. ii) Statement of Changes in Equity. iv) The property, plant and equipment' note. Note: Marks will be awarded for workings were appropriate Question1 The following list of account balances relate to Zanger plc at 31 December 20X8 Sales revenue Cost of sales Distribution costs Administrative expenses Operating lease rentals Loan interest paid Dividends paid Property at cost Plant and equipment at cost 458,450 185,050 28,700 15,000 20,000 2,000 12,000 200,000 154,800 Plant and equipment 34,800 Development expenditure (note c) Proceeds on disposal of plant & equipment Trade receivables Inventories at 31 December 20X8 Cash and bank Trade payables Taxation - over provision in 20X7 Equity shares at 50c each Share premium 8% loan notes (2013) Retained earnings at January 20X8 30,000 55,000 55,000 28,240 120,660 29,400 2,200 100,000 50,000 50,000 851450 851450 The following notes are relevant: a) The property shown on the trial balance was acquired on 1 January 20X8 for 200,000 For the purpose of calculating depreciation only, this property has been analysed into the following elements: Useful economic life Unlimited 50 years Land 150,000 50,000 .Buildings Depreciation should be applied on the property above on the straight line basis and charged to production. Depreciation on plant and machinery is at a rate of 20% on the reducing balance basis and should be charged to cost of sales. Zanger plc's policy is to charge a full years depreciation in the year of acquisition and none in the year of disposal b) An item of plant was disposed of on 30 September 20X8 for 55,000. No other entry apart from its sale proceeds has been made in the books of Zanger plc in respect of the disposal. The item disposed of had originally cost 80,000 and had a carrying value of 51,200 on the date of disposal. c) The figure for development expenditure in the list of account balances represents amounts deferred in previous years in respect of the development of a new product. Unfortunately, during the current year, the government introduced legislation which bans this type of product resulting in its value being impaired to zero. This has yet to be reflected in the financial statements of Zanger plc. d) Zanger plc is being sued by an employee who lost a limb in an accident while at work on 15 March 20X8. In a recently decided case where a similar injury was sustained a settlement figure of 130,000 was awarded by the court. No entry has yet been recorded in relation to this issue in the trial balance. )A provision for income tax for the year to 31 December 20X8 of 20,000 is required f The directors proposed a final dividend of 30 cent per share on 14 January 20X9. g) Interest paid is for the six month period to 30 June 20X8. Required: For the year ending 31 December 20X8, prepare the following for Zanger plc: i) Statement of Profit or Loss and Other Comprehensive Income. ii) Statement of Financial Position. ii) Statement of Changes in Equity. iv) The property, plant and equipment' note. Note: Marks will be awarded for workings were appropriate