Required: Prepare the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of financial position for the year ended 31 December 2022. Note: Show all workings.
Required: Prepare the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of financial position for the year ended 31 December 2022. Note: Show all workings.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter7: Fixed Assets, Natural Resources, And Intangible Assets
Section: Chapter Questions
Problem 7.1.1P
Related questions
Question
Required:
Prepare the statement of profit or loss and other comprehensive income, statement of changes in equity and
Note: Show all workings.
![The following trial balance has been extracted from the books of Middle East Drone Company Ltd. on 31
December 2022
Credit
Administration expenses
Distribution expenses
Share Capital
Share premium
Revaluation surplus
Dividend paid
Cash in hand
Cash at bank
Receivables
Interest paid
Dividends received
Interest received
Land and buildings at cost (land $760,000, buildings $200,00)
Land and buildings: accumulated depreciation
Plant and machinery
Plant and machinery: accumulated depreciation
Retained earnings (as on 1 January 2022)
Purchases
Sales
Inventory as on 1 January 2022
Trade payables
Bank loan
Debit
$
625,000 $
737,500
67,500
1,250
6,250
582,500
62,500
1,200,000
1,000,000
3,150,000
350,000
675,000
200,000
50,000
37,500
2,500
75,000
5,412,500
67,500
250,000
$ 7,782,500 $ 7,782,500
3), Land is to be revalued upwards by $200,000
4). Income tax of $330,000 is to be provided for the year to 31 December 2022.
5. The bank loan is repayable in 6 years' time.
6.The directors declared a final dividend of $337.500.
425,000
587,500
Additional information:
1). Inventory on 31 December 2022 was valued at cost of $237,500. Included in this balance were
goods that cost $37,500. These goods had become damaged during the year, and it is considered
that the goods could be sold for $12,500 after paying commission of $1,250.
2). Depreciation for the year to 31 December 2022 is to be charged against cost of sales as follows.
Buildings
5% on cost (straight line).
Plant and machinery
30% on carrying amount (reducing balance)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F33585e70-d5bb-448c-9bea-08463d79a361%2F84ba2d2c-3a4c-4607-b8d3-7219591ba8a6%2Fr5v674k_processed.png&w=3840&q=75)
Transcribed Image Text:The following trial balance has been extracted from the books of Middle East Drone Company Ltd. on 31
December 2022
Credit
Administration expenses
Distribution expenses
Share Capital
Share premium
Revaluation surplus
Dividend paid
Cash in hand
Cash at bank
Receivables
Interest paid
Dividends received
Interest received
Land and buildings at cost (land $760,000, buildings $200,00)
Land and buildings: accumulated depreciation
Plant and machinery
Plant and machinery: accumulated depreciation
Retained earnings (as on 1 January 2022)
Purchases
Sales
Inventory as on 1 January 2022
Trade payables
Bank loan
Debit
$
625,000 $
737,500
67,500
1,250
6,250
582,500
62,500
1,200,000
1,000,000
3,150,000
350,000
675,000
200,000
50,000
37,500
2,500
75,000
5,412,500
67,500
250,000
$ 7,782,500 $ 7,782,500
3), Land is to be revalued upwards by $200,000
4). Income tax of $330,000 is to be provided for the year to 31 December 2022.
5. The bank loan is repayable in 6 years' time.
6.The directors declared a final dividend of $337.500.
425,000
587,500
Additional information:
1). Inventory on 31 December 2022 was valued at cost of $237,500. Included in this balance were
goods that cost $37,500. These goods had become damaged during the year, and it is considered
that the goods could be sold for $12,500 after paying commission of $1,250.
2). Depreciation for the year to 31 December 2022 is to be charged against cost of sales as follows.
Buildings
5% on cost (straight line).
Plant and machinery
30% on carrying amount (reducing balance)
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