The Cane Growers Enterprise (CGE) is a government owned enterprise which is legislated to generate its own income which it uses to cover capital and recurrent expenditures. CGE is an agent of the National Agriculture Association. The Young Famers association controls 25% of CGE.Outside of these powers, its government also provides CGE with monthly subventions to cover its recurrent expenditures based on CGE budgetary demands and the legal allocations by the government.CGE uses ISPAP to prepare its financial statements. You were asked by to government to assist CGE with its accounting processes, which involved the recording, generation and preparation of accounting transactions and final accounts as stipulated by the IPSASs. Collaborating with a team of qualified and experienced accountants, you were able to prepare the following accounting information of GCE for the year ended December 2022.NotesDividend receivable as at 31 December 2021 was $5,000,000 and Dividend receivable as at 31 December 2022 was $2,000,000.CGE receives an annual transfer of $30,000,000 from the National Agricultural Association for the operating of the industry.Service Charge Outstanding as at 31 December 2022 was $500,000.Interest outstanding from Loans to Members as of 31 December 2021 was$2,000,000. Interest receivable at 31 December 2022 was $6,000,000.All membership fees were paid in full. In 2022, twenty (20) members prepaid theirmembership for eight ( 8) months at $15,000 per month.Twenty percent (20%) of the grants were not received at the end of each year.To secure adequate storage in 2022, payments of $3,000,000 were made in advance.Bond issued in 2021 was issued for $200,000,000. There was a repayment of$50,000 in 2022.All statutory contributions were paid at year end.Required:Prepare the Statement of Financial Performance DetailsDividends received from equityinvestmentsService Charge on loans to beneficiariesGross margin on sale of sugar canesInterest on Loans to MembersInterest on investmentsMiscellaneous IncomeMembership FeesGrants ReceivedGrants to farmersDonations receivedPenalties and Fines for breach ofAssociation rulesCost of Seminars for FarmersRoyalties for use of landsWarehouse StorageGeneral Cleaning & SanitationProperty RatesDepreciation of Fixed AssetsAccounting and Consultation CostAdvances to StaffSalaries to Staff (Gross)Staff Contribution to Social Security &Other Statutory ContributionsCGE's Contribution to Social Security &Other Statutory ContributionsGain on Sale of EquipmentProceed on the Sale of EquipmentPlant, Property and Equipment (at cost,after disposal)Accumulated DepreciationShort-term investmentsTrade and Other PayablesCash and Cash EquivalentInventory at year endReceivablesDevelopment Bond IssuedContribution from Other GovernmentEntitiesContribution from Non-controllingentities2022Amount $00014,20070,400367,3087,40014,70060100,02050,000350,00010,0003307,0004,0006,0005001,0007005,000680200,0001,00035002,00012,800450,00047,70070,0005,1602,500181,0186,500150,00075,00025,0002021Amount $0007,50060,500255,4008,40015,0007080,00060,00020,87507006,0003,5005,5001,5001,0007004,50018406125,000750108,62500480,00047,00030,00067001,500102,41410,500200,00075,00025,000

An income statement stands for the statement that shows profits and loss of the firm, its revenue…

Answered: The Cane Growers Enterprise (CGE) is a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Cane Growers Enterprise (CGE) is a government owned enterprise which is legislated to generate its own income which it uses to cover capital and recurrent expenditures. CGE is an agent of the National Agriculture Association. The Young Famers association controls 25% of CGE.

Outside of these powers, its government also provides CGE with monthly subventions to cover its recurrent expenditures based on CGE budgetary demands and the legal allocations by the government.

CGE uses ISPAP to prepare its financial statements. You were asked by to government to assist CGE with its accounting processes, which involved the recording, generation and preparation of accounting transactions and final accounts as stipulated by the IPSASs. Collaborating with a team of qualified and experienced accountants, you were able to prepare the following accounting information of GCE for the year ended December 2022.

Notes

Dividend receivable as at 31 December 2021 was $5,000,000 and Dividend receivable as at 31 December 2022 was $2,000,000.
CGE receives an annual transfer of $30,000,000 from the National Agricultural Association for the operating of the industry.
Service Charge Outstanding as at 31 December 2022 was $500,000.
Interest outstanding from Loans to Members as of 31 December 2021 was

$2,000,000. Interest receivable at 31 December 2022 was $6,000,000.
All membership fees were paid in full. In 2022, twenty (20) members prepaid their

membership for eight ( 8) months at $15,000 per month.
Twenty percent (20%) of the grants were not received at the end of each year.
To secure adequate storage in 2022, payments of $3,000,000 were made in advance.
Bond issued in 2021 was issued for $200,000,000. There was a repayment of

$50,000 in 2022.
All statutory contributions were paid at year end.

Required:

Prepare the Statement of Financial Performance

Details
Dividends received from equity
investments
Service Charge on loans to beneficiaries
Gross margin on sale of sugar canes
Interest on Loans to Members
Interest on investments
Miscellaneous Income
Membership Fees
Grants Received
Grants to farmers
Donations received
Penalties and Fines for breach of
Association rules
Cost of Seminars for Farmers
Royalties for use of lands
Warehouse Storage
General Cleaning & Sanitation
Property Rates
Depreciation of Fixed Assets
Accounting and Consultation Cost
Advances to Staff
Salaries to Staff (Gross)
Staff Contribution to Social Security &
Other Statutory Contributions
CGE's Contribution to Social Security &
Other Statutory Contributions
Gain on Sale of Equipment
Proceed on the Sale of Equipment
Plant, Property and Equipment (at cost,
after disposal)
Accumulated Depreciation
Short-term investments
Trade and Other Payables
Cash and Cash Equivalent
Inventory at year end
Receivables
Development Bond Issued
Contribution from Other Government
Entities
Contribution from Non-controlling
entities
2022
Amount $000
14,200
70,400
367,308
7,400
14,700
60
100,020
50,000
350,000
10,000
330
7,000
4,000
6,000
500
1,000
700
5,000
680
200,000
1,000
3500
2,000
12,800
450,000
47,700
70,000
5,160
2,500
181,018
6,500
150,000
75,000
25,000
2021
Amount $000
7,500
60,500
255,400
8,400
15,000
70
80,000
60,000
20,875
0
700
6,000
3,500
5,500
1,500
1,000
700
4,500
18406
125,000
750
108,625
0
0
480,000
47,000
30,000
6700
1,500
102,414
10,500
200,000
75,000
25,000

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