Prepare the Note to the financial statements for inventories and prepare the Statement of Comprehensive Income for the year ending 31 August 2020 according to the nature of expense method. Proper identification of the statement and layout according to IAS1 – Presentation of financial statements is required. Ignore the Other Comprehensive Income section of the statement. The following is the pre-adjustment trial balance of Alibaba Ltd for the year ending 31 August2020. Study the information given below and answer the questions that follow.Trial balance as at 31 August 2020R'000R'000DRCROrdinary shares3 300 000Long term loan1 000 000Retained earnings beginning of year427 000Land1 500 000Factory3 000 000Machinery800 000Vehicles220 000Accumulated depreciation Machinery - end440 000of yearAccumulated depreciation Vehicles -96 800beginning of yearAccumulated depreciation Factory- end of440 000yearTrade debtors65 650Trade creditors35 800

Financial statements consists of the following:- Statement of Financial position; Statement of…

Answered: The following is the pre-adjustment…

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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Prepare the Note to the financial statements for inventories and prepare the Statement of Comprehensive Income for the year ending 31 August 2020 according to the nature of expense method. Proper identification of the statement and layout according to IAS1 – Presentation of financial statements is required. Ignore the Other Comprehensive Income section of the statement.

The following is the pre-adjustment trial balance of Alibaba Ltd for the year ending 31 August
2020. Study the information given below and answer the questions that follow.
Trial balance as at 31 August 2020
R'000
R'000
DR
CR
Ordinary shares
3 300 000
Long term loan
1 000 000
Retained earnings beginning of year
427 000
Land
1 500 000
Factory
3 000 000
Machinery
800 000
Vehicles
220 000
Accumulated depreciation Machinery - end
440 000
of year
Accumulated depreciation Vehicles -
96 800
beginning of year
Accumulated depreciation Factory- end of
440 000
year
Trade debtors
65 650
Trade creditors
35 800

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