Students MUST ANSWER QUESTION 1 Section A: QUESTION 1 (Compulsory) The following trial balance of McEvoy Ltd was extracted as at 31st December 2019: E 145,000 4,550 Dr Cr e 380,000 Freehold Land 250,000 Freehold property at cost Freehold property accumulated depreciation Machinery at cost 15,000 Machinery accumulated depreciation Trade Receivables 18,845 14.250 Trade Payables Inventory at 1st January 2019 19,500 Distribution expenses 34,500 Administration expenses 39,000 Bank balance 16,655 Deposit Interest received 3,500 Sales Revenue 602,000 Sales Returns 5,700 Purchases 298,000 Purchases Returns 7,500 Debenture interest paid 1,000 Ordinary share capital (50 cent each) 250,000 Retained earnings - balance 1st January 2019 7.400 8% debenture stock 2024 25,000 Share Premium 19.000 1.078.200 1.078.200 Additional information: (1) Closing inventory, as per the physical stock count at 31st December 2019 was 14,000. One of the McEvoy's customers has gone bankrupt owing 1,200 at year end. Depreciation is to be charged as follows: Freehold property 5% of cost Machinery 10% reducing balance method Depreciation of freehold property and machinery should be included as part of Cost of Sales (iv) The following amounts were prepaid/ outstanding at the year-end: Administration expenses prepaid 1,500 Distribution expenses outstanding 1,055 (v) Corporation tax for the year is estimated at 16,000 (vi) Provide for outstanding debenture interest at 31st December 2019 Requirement: nois up mort antalup OWT YOU Wola Prepare in a form suitable for publication: The Statement of Profit or Loss and Other Comprehensive Income of McEvoy Ltd for the year ended 31st December 2019 and the Statement of Financial Position as at that date, in so far as the information permits. You are required to submit working to show the make-up of the figures. (34 marks)