The accountant of Tompson Co has prepared the following list of account balances as at 31 December 20x7. 50c ordinary shares (fully paid) 450 10% loan notes (secured) 200 Retained earnings 1. 1 X7 242 General reserve 1.1.X7 171 Land and buildings 1.1.X7 (cost) 430 Plant and machinery 1.1.X7 (cost) 830 Accumulated depreciation Buildings L.L.X7 2 0 Plant and machinery 1 1 X7 222 Inventory 1.1.X7 Sales 2.695 Purchases 2,152 Ordinary dividend Loan note interest Wapes and salaries Light and heat Sundry expenses 113 Suspense account Trade accounts receivable 179 Trade accounts payable 195 Cash 190 135 Notes (a) Sundry expenses include 9.000 paid in respect of insurance for the year ending 1 September 20X8. Light and heat does not include an invoice of $3.000 for clectricity for the three months ending 2 January 20X8, which was paid in February 20X8. Light and heat also includes $20,000 relating to salesmen's commission (b) The suspense account is in respect of the following items S000 120 Proceeds from the issue of 100,000 ordinary shares Proceeds from the sale of plant 300 (251) Less purchase of equity investments Less purchase of inventory 135 All the inventory acquired was sold during 20X7. The equity investments were still held by Tompson at 31.12.X7. (e) The property was acquired some years ago. The buildings clement of the cost was estimated at $100.000 and the estimated useful life of the assets was fifty years at the time of purchase. As at 31 December 20X7 the property is to be revalued at $800,000 (revaluation surplus is a separate reserve in Equity and is a part of other comprehensive income). (d) The plant which was sold had cost $350,000 and had a carrying amount of $274,000 as on 1.1.X?. 516,000 depreciation is to be charged on plant and machinery for 20x7. (e) The management wish to provide for: (i) Loan note interest due (in) A transfer to general reserve of $16.000 (ii) Audit fees of $4,000 Inventory as at 31 December 20X7 was valued at $220.000 (Cost (g) Tacation is to be ignored. Regin Prepare the financial statements of Tompson Co as at 31 December 20X7 statement of financial position statement of total comprehensive income, equity statement). Notes to the statements are not needed. The accountant of Tompson Co has prepared the following list of account balances as at 31 December 20X7. 50c ordinary shares (fully paid) 450 10% loan notes (secured) 200 Retained earnings 1.1.X7 242 General reserve 1.1.X7 171 Land and buildings 1.1.X7 (cost) 430 Plant and machinery 1.1.X7 (cost) 830 Accumulated depreciation Buildings 1.1.X7 2 0 Plant and machinery 1.1.X7 222 Inventory 1.1.X7 190 Sales 2,695 Purchases 2,152 Ordinary dividend 15 Loan note interest Wages and salaries 254 Light and heat Sundry expenses 113 Suspense account 135 Trade accounts receivable 179 Trade accounts payable 195 Cash 126 10 31 Notes (a) Sundry expenses include $9,000 paid in respect of insurance for the year ending 1 September 20X8. Light and heat does not include an invoice of $3,000 for electricity for the three months ending 2 January 20X8, which was paid in February 20X8. Light and heat also includes $20,000 relating to salesmen's commission. (b) The suspense account is in respect of the following items. S'000 Proceeds from the issue of 100,000 ordinary shares 120 Proceeds from the sale of plant 300 420 Less purchase of equity investments (251) Less purchase of inventory (34) 135 All the inventory acquired was sold during 20x7. The equity investments were still held by Tompson at 31.12.X7. (c) The property was acquired some years ago. The buildings element of the cost was estimated at $100,000 and the estimated useful life of the assets was fifty years at the time of purchase. As at 31 December 20X7 the property is to be revalued at $800,000 (revaluation surplus is a separate reserve in Equity and is a part of other comprehensive income). (d) The plant which was sold had cost $350,000 and had a carrying amount of $274,000 as on 1.1.X7. S36,000 depreciation is to be charged on plant and machinery for 20x7. (e) The management wish to provide for: (i) Loan note interest due (ii) A transfer to general reserve of $16,000 (iii) Audit fees of $4,000 (1) Inventory as at 31 December 20X7 was valued at $220,000 (cost). (g) Taxation is to be ignored. Required Prepare the financial statements of Tompson Co as at 31 December 20X7 (statement of financial position, statement of total comprehensive income, equity statement). Notes to the statements are not needed