UNIT 4 (FINANCIAL STATEMENTS OF A COMPANY): ACTIVITIES AND NOTES REQUIRED FINACCBRESUB02/16 Prepare the Statement of Comprehensive Income for the year ended 31 December 2022 and Statement of Financial Position as at 31 December 2022. INFORMATION The information given below was extracted from the accounting records of Woodford Ltd, on 31 December 2022 (the end of the financial year). PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 DECEMBER 2022 WOODFORD LTD Balance Sheet Accounts Section Ordinary share capital Debit (R) Credit (R) 3 200 000 Retained earnings Land and buildings 400 000 5 400 000 Vehicles (cost) 1 300 000 Equipment (cost) 1 000 000 Accumulated depreciation on vehicles 500 000 Accumulated depreciation on equipment 400 000 publi Debentures (10% p.a.) (long term loan 2 600 000 Debtors control 360 000 Provision for bad debts 20 000 Bank 230 000 Creditors control 930 000 PS P South African Revenue Services (Company tax) 290 000 Nominal accounts section Sales 7 570 000 Opening inventory 1 100 000 Purchases 4 110 000 Sales returns Purchases returns Carriage on purchases 50 000 330 000 80 000 Maintenance 70 000 Rates 50 000 Carriage on sales 100 000 Wages and salaries 800 000 Stationery 10 000 Bad debts 20 000 Sundry expenses 70 000 Insurance 30 000 Telephone 70 000 Water and electricity 80 000 Directors' fees 480 000 Auditor's fees 50 000 Ordinary share dividends 200 000 15 950 000 15 950 000 Page 2 of 3 Adjustments and additional information 1. 1.1 1.2 2. 3. Physical stocktaking on 31 December 2022 revealed the following inventories on hand: Trading inventory, R900 000 Stationery, R2 000. A notice from the municipality reflected the rates assessment for the year ended 31 December 2022 to be R48 000. Depreciation must be provided for as follows: On vehicles at 20% per annum on the diminishing balance. 3.1 3.2 On equipment at 10% per annum on cost. 4. 5. A debtor, who owed R10 000, was declared insolvent. Received 40% of the amount owing from his insolvent estate (which was recorded). The balance of his account must now be written off. The insurance total includes a premium of R12 000 that was paid for the period 01 February 2022 to 31 January 2023. 6. The provision for bad debts must be increased to R22 000. 7. Provide for interest on debentures that is yet to be paid. 8. An amount of R20 000 was due to be paid for audit fees on 02 January 2023. 9. The company tax for the year amounted to R330 000. 10. The directors declared a final dividend of 75 cents per share. The authorised share capital consisted of 500 000 ordinary shares of which 400 000 have been issued.