QUESTION 3 (20 Marks) REQUIRED Prepare the Statement of Comprehensive Income for the year ended 31 December 2023. Some of the amounts have been entered in the answer book for you. INFORMATION The information given below was extracted from the accounting records of Cheshire Limited on 31 December 2023 (the end of the financial year). CHESHIRE LIMITED PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 DECEMBER 2023 Balance Sheet Accounts Section Ordinary share capital Retained earnings Land and buildings Vehicles (cost) Debit (R) Credit (R) 1 600 000 200 000 2 700 000 650 000 Equipment (cost) 500 000 Accumulated depreciation on vehicles Accumulated depreciation on equipment 250 000 200 000 Debentures (10% p.a.) 1 300 000 Debtors control 180 000 Provision for bad debts 10 000 Bank 115 000 Creditors control 465 000 South African Revenue Services: Company tax 145 000 Nominal accounts section Sales Purchases Sales returns Purchases returns Opening inventory Carriage on purchases Maintenance Rates Carriage on sales Wages and salaries Stationery Bad debts Sundry expenses Insurance Telephone Water and electricity Directors' fees Auditor's fees Ordinary share dividends 100 000 7 975 000 7 975 000 3 785 000 2 055 000 25 000 165 000 550 000 40 000 35 000 25 000 50 000 400 000 5 000 10 000 35 000 15 000 35 000 40 000 240 000 25 000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 7P: Complex Income Statement The following items were derived from Woodbine Circle Corporations adjusted...

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1. Physical stocktaking on 31 December 2023 revealed the following inventories : Trading inventory, R180 000

Stationery, R1 000,

2. A notice from the municipality reflected the rates assessment for the year ended 31 December

2023 to be R24 000.

3. Depreciation must be provided as follows: On vehicles. R80 000,

On equipment at 10% per annum on cost. Note: Equipment with a cost price of R100 000 was purchased on 01 July 2023. This transaction has been recorded,

4. A debtor, who owed R5 000, was declared insolvent. Cheshire Limited received and recorded 40% of the amount owed . The balance of his account must now be written off.

5. The insurance total includes an insurance premium of R6 000 that was paid for the period 01 April 2023 to 31 March 2024.

6. An amount of R69 535 was overpaid to South African Revenue Services for company tax.

7. The provision for bad debts must be increased to R11 000.

8. Provide for interest on debentures that is yet to be paid.

9. An amount of R69 535 was overpaid to South African Revenue Services for company tax.

How to prepare the statement of comprehensive income for the year ended 31 december 2023.