The trial balance of Far East Company Ltd, a whole sale distribution company for the year ended 31 December, 2017 is as follows: DR GH CR GH Preferences share capital @ GH1 200,000 Ordinary share capital @ GH1 1,000,000 Exchange Reserve 75,000 General Reserve 150,000 Retained Profits (31/12/2016) 215,000 Sales 5,095,000 Purchases 2,196,000 Carriage inwards 38,000 Inventory (31/12/2016) 902,000 Wages (adding value to goods) 35,000 Wages : warehouse 380,000 Wages and salaries: Administration 120,000 Wages and salaries: sales 197,000 Motor expanses 164,000 Bad debts 31,000 Loan notes interest 40,000 Preference dividend 20,000 Ordinary dividend 500,000 Bank overdraft interest 19,000 General distribution expenses 81,000 General administrative expenses 73,000 Directors' remuneration 210,000 Investment in Associates 340,000 Income from shares in Associates 36,000 Discount allowed and received 55,000 39,000 Buildings: at cost 1,200,000 Plant and machinery: at cost 330,000 Motor vehicles: at cost 480,000 Provision for depreciation: Land and buildings 375,000 Plant and machinery 195,000 Motor vehicle 160,000 Goodwill 40,000

Patients, license and trade marks 38,000 Bank overdraft 21,000 Trade account receivable and payable 864,000 392,000 Loan notes 10% 400,000 8, 353,000 8, 353,000

Additional information 1. Inventory at 31/12/2017 was valued at GH1,103,000 2. Motor expenses and depreciation on motors to be apportioned; distribution 75%; administration 25%. 3. Depreciation on buildings and plant and machinery to be apportioned: 50% distribution; 50% administrative. 4. Depreciate on cost; motor vehicle 25%; plant and machinery 20% 5. Accrued corporate tax on profits of the year amounted to GH26,000. This is payable on 1/10/2018. 6. During the year, new vehicles were purchased at a cost of GH60,000 7. During the year 2017, one of the buildings which had originally cost GH130,000, and which had a net book value at the date of sale of GH80,000 was sold for GH180,000. Depreciation on buildings to be charged against the years profits is GH60,000. The buildings are revalued by Odogu and Co. Chartered Surveyors at GH1,500,000 at 31/12/2017 (and this figure is to be included in the financial statements) 8. Directors remuneration was as follows: GH Marketing 42,000 Chairman 37,000 Managing 61,000 Finance 50,000 190,000 Besides, each director drew GH5,000 fees 9. The loan notes are to be redeemed in five equal annual installments, starting in the following year, 2018 10. The investments are in listed companies with the market value at 31 December 2017 of GH438,000. 11. Accrued auditors remuneration including expenses GH7,000 Required: (i) Prepare income statement and statement for the year ended 31/12/2017 (ii) Statement of Changes in Equity (Income Surplus) (iii) Statement of Financial position for Far East Company Ltd for the period ending 31/12/2017 in compliance with the Companies Code, 1963, Act 179, IAS 1 and any other relevant accounting standards as far as the available information will permit.