The following shown an extract from Archy Limited’s records at 30th April 2019.
Administration Expenses $ 950,000 Land & buildings (cost) $ 900,000
Distribution costs 531,000 Acc. Depreciation (1 May 2019) 36,000
Purchases 2,875,000 Plant & Equipment (cost) 102,800
Finance Costs 9,000 Acc. Depreciation (1 May 2019) 36,400
Investment income 5,700 Intangible Assets (carrying value) 68,000
Revenue 5,350,000 Retained earnings (1 May 2019) 813,300
Ordinary share capital 1,000,000 Bank Loan 100,000
Receivables 55,700 Payables 62,100
Inventory (1 May 2019) 1,670,000 Cash 242,000
The following additional information in available:
a. The tax charge for the year is estimated at $227,000.
b. During the year, a piece of plant costing $56,000 and accumulated depreciation of $21,000 is held for sale.
c. Plant and machinery should be depreciated at 20% on cost charged to cost of sales.
d. The land and buildings were originally acquired on 1 May 2017 for $900,000 of which $300,000 related to land. Depreciation is calculated on a straight-line basis over 50 years life and charged to administration expenses.
e. At the beginning of the year Archy revalued their land and buildings to $1,400,000 of which $460,000 related to land. The remaining life remains unchanged. This has not been accounted for.
f. Closing inventory was valued at $1,820,000 before any adjustments for damaged items. At the year end inventory count it was discovered that one line of goods in the warehouse had been damaged. The count shows that 1,250 items were damaged. The inventory was recorded at cost of $150 per item, however, following the damage the items have a scrap value of $40 each.
Required: Prepare a statement of Profit or Loss and other comprehensive income and statement of financial position for the year ended 30th April 2019.