simple question 1

Part 2 (40 marks) Singapore Ltd, has been manufacturing and selling kid's toys for the last two years. The Singapore Ltd uses the single statement format for the statement of profit or loss and company commenced its operations on 1 July 2018 by issuing 350 000, $5 shares fully paid. other comprehensive income and classifies expenses by function within the statement.~ There was no other cost related to the share issue. ~ For the year ending 30 June 2020, the company recorded the following aggregate transactions: Summarised account balances are provided below:- Accounts Year-end balances, 30 June 2020- Sales (90 % credit and 10 % cash sales) Cost of sales 6 395 000 Cash on Hande 22 000 4 419 000 Bank 50 000- +90/4 6 000 Bank Overdraft 86 000 Rent revenue 3000 Trade receivable 69 000 Gain on sale of plant 22 000 Allowance for doubtful debts 12 000 Employee benefit expenses - Admin 100 000 Other receivablese 70 000 Utilities expenses (1/3 selling & 2/3 admin)+ 36 000 Inventoriese 900 000 Depreciation & amortisation expense- Admin 54 000 Prepaid insurance 2 000 Selling & Distribution Expenses 32 000 Financial assets held for tradinge 215 000 Insurance expense - Admine 58 0004 Plant and equipment 1 350 000 Doubtful debts expense Interest expense 7 000 Accumulated depreciation - plant and equipment Land 195 000 30 000 Other borrowing expenses 12 000 Buildings 416 000 Income tax expense 268 000 32 000 Accumulated depreciation - buildings 10 000 The following additional information was noted during the preparation of financial statements Patents 16 000- for the year ended 30 June 2020:*- Accumulated amortisation of patente 5 000 Furniture 33 000 * Additional 80 000 @ $5 fully paid shares were issued on 1 July 2019.- Accumulated depreciation - furniture 10 000 " A cash dividend of $180 000 was declared and paid during the 2020 financial year Goodwill 910 000- and a final dividend for 2020 of $75 000 was proposed but not recognised in the Trade payable 535 000- financial statements.~ Provision for employee benefits 88 0004 * Inventory was measured at the lower of cost and net realizable value. Provision for warranty Bank loans 67 000 * Buildings, plant and equipment were measured at cost. The benefits were expected to 10 000 be received evenly over the useful life of the asset. Depreciation expense has been Other loans 27 000 recorded for all the property, plant and equipment (PPE). ~ Share Capital * Land was revalued upward by $100 000 (related income tax for this transaction was Retained earnings, 30 June 2019 790 000- $30 000). The revaluation gain will not be reclassified and has been recorded in the Dividends paide 180 000- Land Revaluation Surplus'. The valuation was conducted by the registered valuer, Land revaluation surplus 228 000 Abbey Valuations Pt Ltd. ~ Current tax liabilitye 65 000 * Financial assets held for trading are equity investments that are held for the purpose of Deferred tax asset 34 000- selling and short-term profit taking.~ * $127 000 of other loans are repayable within six months. The remaining amount is payable in full at the end of 2022- * $30 000 of bank loans are repayable within one year. The remaining amount is payable in full at the end of 2024.~ The provision for employee benefits includes $47 000 payable within one year. ~ * The warranty provision is in respect of a 12-month warranty given on certain goods sold. * The bank loan is for 5 years and repayable in full at the end of the term. The interest rate is 9% and it is secured over the land. ~Required:+ For the year ending 30 June 2020 (Note: comparative financial statements are not required), 1. Using the pro forma table supplied in appendix B, prepare a preliminary trial balance for Singapore Ltd; (5 marks)-Singapore Ltd - Trial Balance as at 30 June 20206 Accounts DRe CRe Sales Interest incomee Gain on sale of plant Rent revenue Cost of sales Employee benefit expenses- Administration Depreciation & amortisation exp- Admine Selling & Distribution expenses Insurance expensese Doubtful debts expense Interest expense Utilities expenses Other borrowing expensese Income tax expenses Bank Overdrafte Cash on hand Bank Trade receivable Allowance for doubtful debts/ impairment Other receivablese Inventoriese Prepaid insurance Lande Buildings Plant and equipment Furniture Accumulated depreciation - plant & equipment Accumulated depreciation - buildings Accumulated depreciation - Furniture Patents Accumulated amortisation of patent Goodwill Financial assets held for tradinge Bank loans Other loanse Accounts payable -Trade Provision for employee benefits Provision for warranty Current tax liability Deferred tax assete Retained earnings, 30 June 2019( Dividends paide Land revaluation surpluse Share capital Totals L L L L L L L LL LL LL LL LL LL LL LL LL LL LL LL LL LL LLLLLLLLLLLI