Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

V18] The trial balance of Beta shows the following balances at 31 December 2021: Dr Cr $000 Ordinary share capital (500,000 shares) Foreign currency translation

V18] The trial balance of Beta shows the following balances at 31 December 2021: Dr Cr $000 Ordinary share capital (500,000 shares) Foreign currency translation reserve Investment property Retained earnings 1 January 2021 Inventory Income from ordinary activities Office buildings (cost) Office buildings (aggregate depreciation) Expenses from ordinary activities Cash Accounts receivable 10% loan (payable on 01 December 2027) Trade accounts payable Other receivables Final dividends payable Income tax Finance cost Property tax payable Investments in Gazprom Revaluation surplus Share premium account Bank overdraft Warehouse buildings Equipment and vehicles Leasehold property Additional information: (1) (2) (3) (4) (5) (6) 100 600 980 356 350 12 35 22 92 381 160 303 120 3511 893 362 28 34 $000 1500 26 269 50 40 3 300 6 3511 Depreciation charges for the year should be calculated at 10% on cost for equipment and vehicles and at 2% on book value for buildings. The income tax for the year is evaluated as $17,000 Receivables totalling $4,000 are to be written off Allowance for receivables should be created as 0,1% of net sales The loan note issue during the year took place on 1 April 2021, and all interest for the year should be accrued Life insurance for general director is to be accrued $3,000. (7) Dividends were paid $0.1 per share at 31 December 2021. (8) Administrative expenses of $1,150 were prepaid on 31 December 2021 (9) An invoice for telephone charges for the quarter ended 1 February 2022 for $15,000 was received by the company after the above trial balance was extracted. Telephone expenses are included in administrative expenses. (10) On 1 October 2021, Beta issued 5,000,000 equity shares at $5 each. Required: Prepare a) a statement of profit or loss (income statement) for the year ended 31 December 2021,
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
V18 -ber 2021 Additienal infermatiee: (i) Deprociation charyes fos the year should be salculmove at lors an quet fir equipment and vehicles and at 27 en book value for huilinge. (2) The income bit for the year is caaluand as 517,000 (3) Peccreables iotalling 54.009 ate to be weitien off (4) Nllow ance for feceivables should be crened as 0,1% of net sales 6) The loan note isuc during the year kok plact an 1 April aveI, atd all imereat for the year should be accrusd (ie) Life injurance for mencral disceser is to be ascrucd 53.000 (7) Dividendy were paid 90.1 per hare at 31 December 20 ?1. (i) Admitiserative expctics of 51,150 w cre perpail en 31 Deccember 2091 (i) An inveice for velephone charges for the quarter eadeil I Febeuafy 2ug2 for 515.000 was received by the cocifary after the abone trial belance was extoctind Telephone experacs ane incleded in a tministative cypeses. (a) On 1 October 2021, Beta istued 5,600000 tquity share an 55 cach. Reguired: Prepare a) a staiement of prefit or less finceme statrmen for the year coded 31 Docember 2021 . Required: Prepare a) a statement of profit or loss (income statement) for the year ended 31 December 2021, b) a statement of changes in equity for the year ended 31 December 2021 , c) a statement of financial position (balance sheet) at that date mber 2021: Additional information: (1) Depreciation charges for the year should be calculated at 10% on cost equipment and vehicles and at 2% on book value for buildings. (2) The income tax for the year is evaluated as $17,000 (3) Receivables totalling $4,000 are to be written off (4) Allowance for receivables should be created as 0,1% of net sales (5) The loan note issue during the year took place on 1 April 2021, and interest for the year should be accrued (6) Life insurance for general director is to be accrued $3,000. (7) Dividends were paid $0.1 per share at 31 December 2021 . (8) Administrative expenses of $1,150 were prepaid on 31 December 2021 (9) An invoice for telephone charges for the quarter ended 1 February 2022 $15,000 was received by the company after the above trial balance was extract Telephone expenses are included in administrative expenses. (10) On 1 October 2021 , Beta issued 5,000,000 equity shares at $5 each. Required: Prepare a) a statement of profit or loss (income statement) for the year ended December 2021, b) a statement of changes in equity for the year ended 31 December 2021, c) a statement of financial position (balance sheet) at that date

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Linking Auditing And Meta Evaluation Enhancing Quality In Applied Research

Authors: Thomas A. Schwandt, Edward S. Halpern

1st Edition

0803929684, 978-0803929685

More Books

Students also viewed these Accounting questions