SECTION A 1. On 1st July 20X8 Kiev had a 1 for 10 rights issue at a price of 3.00. The rights were fully subscribed. The cash was correctly posted but the other side of the entry was taken to suspense. On 29th June 20x9 the company then had a 1 for 8 bonus issue to utilise some of the share premium account. No entries have yet been made to reflect the bonus issue.- Answer all 3 questions and clearly show all workings as credit will be given for these. 2. Total for section B: 70 marks The tax expense for the year is 104,000. The balance on the trial balance represents an underprovision of the previous year's tax liability Question 1 3. Closing inventory is valued at a cost of 145,000. Included within that figure are some items that cost 9,000. These goods were damaged. They will be repaired at a cost of 1,000 before being sold for an estimated 9,500.- You have been given the following information and asked to prepare the financial statements for Kiev plc for the year ended 30th June 20X9. 4. The deferred tax liability needs to be decreased to 39,221.- Trial Balance as at 30 June 20X9 5. 400,000 250,000 On 1st July 20X8 Kiev plc disposed of some machinery. The machinery had originally cost 20,000 and had accumulated depreciation of 14,000. So far Kiev plc has only accounted for the cash proceeds of 5,000, posting the credit to a suspense account on the trial balance. Any profit or loss on disposal should be posted to cost of sales. 1,000,000 200,000 6. 2,705.555 Plant and machinery is depreciated at 20% reducing balance. All depreciation should be charged to cost of sales. The factory depreciation has already been calculated and reflected separately in the trial balance. 234,976 124,500 7. 45,584 Kiev plc sold goods to a customer for 11,576. The customer was given three year's interest free credit. The full amount was recorded in revenue when the goods were delivered on 1st July 20X8. Interest rates are 5%. 246,680 50,000 Share capital (1) Share premium account Factory cost Factory depreciation as at 30.6.X9 PPE cost PPE accumulated depreciation at 30.6.X8 Opening inventory Deferred tax Trade receivables Bank loan Bank Trade payables Sales Purchases Production costs Administrative costs Distribution costs Factory depreciation Dividend Income tax Suspense 10,452 8. 229,688 2,394,965 On 1st July 20X8 Kiev took out a 5 year bank loan of 50,000. The loan required Kiev to pay 3.52% interest for the 5 years of the loan. The loan would then be redeemed by a payment of 60,000. The market rate of interest for a loan to a company with Kiev's credit risk was 7%. The 50,000 was recorded in the trial balance and debited to the cash account. No further entries have yet been made with respect to this loan. 9. 871,145 134,736 188,665 79,065 25,000 125,000 5,000 Kiev spent 5,000 on an advertising campaign which ran for two months from the start of June 20X9. The 5,000 was posted to administrative expenses. 125,000 3,930,213 1,585,585 Requirements Taking into account all the information provided: (a) Prepare a Statement of profit or loss for the year ended 30th June 2009 Retained earnings b/f (b) Prepare a Statement of changes in equity for the year ended 30th June 20x9 5,515,798 5,515,798 (c) Prepare a Statement of financial position as at 30th June 20x94 (Question 1 total: 35 marks) The following information is also provided: 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. SECTION A 1. On 1st July 20X8 Kiev had a 1 for 10 rights issue at a price of 3.00. The rights were fully subscribed. The cash was correctly posted but the other side of the entry was taken to suspense. On 29th June 20x9 the company then had a 1 for 8 bonus issue to utilise some of the share premium account. No entries have yet been made to reflect the bonus issue.- Answer all 3 questions and clearly show all workings as credit will be given for these. 2. Total for section B: 70 marks The tax expense for the year is 104,000. The balance on the trial balance represents an underprovision of the previous year's tax liability Question 1 3. Closing inventory is valued at a cost of 145,000. Included within that figure are some items that cost 9,000. These goods were damaged. They will be repaired at a cost of 1,000 before being sold for an estimated 9,500.- You have been given the following information and asked to prepare the financial statements for Kiev plc for the year ended 30th June 20X9. 4. The deferred tax liability needs to be decreased to 39,221.- Trial Balance as at 30 June 20X9 5. 400,000 250,000 On 1st July 20X8 Kiev plc disposed of some machinery. The machinery had originally cost 20,000 and had accumulated depreciation of 14,000. So far Kiev plc has only accounted for the cash proceeds of 5,000, posting the credit to a suspense account on the trial balance. Any profit or loss on disposal should be posted to cost of sales. 1,000,000 200,000 6. 2,705.555 Plant and machinery is depreciated at 20% reducing balance. All depreciation should be charged to cost of sales. The factory depreciation has already been calculated and reflected separately in the trial balance. 234,976 124,500 7. 45,584 Kiev plc sold goods to a customer for 11,576. The customer was given three year's interest free credit. The full amount was recorded in revenue when the goods were delivered on 1st July 20X8. Interest rates are 5%. 246,680 50,000 Share capital (1) Share premium account Factory cost Factory depreciation as at 30.6.X9 PPE cost PPE accumulated depreciation at 30.6.X8 Opening inventory Deferred tax Trade receivables Bank loan Bank Trade payables Sales Purchases Production costs Administrative costs Distribution costs Factory depreciation Dividend Income tax Suspense 10,452 8. 229,688 2,394,965 On 1st July 20X8 Kiev took out a 5 year bank loan of 50,000. The loan required Kiev to pay 3.52% interest for the 5 years of the loan. The loan would then be redeemed by a payment of 60,000. The market rate of interest for a loan to a company with Kiev's credit risk was 7%. The 50,000 was recorded in the trial balance and debited to the cash account. No further entries have yet been made with respect to this loan. 9. 871,145 134,736 188,665 79,065 25,000 125,000 5,000 Kiev spent 5,000 on an advertising campaign which ran for two months from the start of June 20X9. The 5,000 was posted to administrative expenses. 125,000 3,930,213 1,585,585 Requirements Taking into account all the information provided: (a) Prepare a Statement of profit or loss for the year ended 30th June 2009 Retained earnings b/f (b) Prepare a Statement of changes in equity for the year ended 30th June 20x9 5,515,798 5,515,798 (c) Prepare a Statement of financial position as at 30th June 20x94 (Question 1 total: 35 marks) The following information is also provided: 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