The warehouse is funded via a mortgage loan of R1 million, which bearsinterest at 10% per annum.Tax is levied at 28% on taxable income.At year-end, the company had R18 000 cash on hand.Required:3.1Prepare a statement of profit or loss and other comprehensive income.3.2Prepare the asset section of the statement of financial position. Innovate Veg (Pty) Ltd distributes and sells fresh produce regionally in KwaZulu-Natal. The company has a large cold storage warehouse and three retail outlets.Innovate Veg (Pty) Ltd sells to shop customers and delivers to certain boutiquehotels on credit.You have been provided with the following information for the year ended 30June 2021:The company made cash sales of R1.2 million and credit sales ofR500 000, of which R50 000 was still outstanding (i.e. owed bycustomers) at year-end.Vegetables and fruit costing R800 000 were sold during the year.R35 000 stock was on hand at year-end.Produce is purchased from various farmers and local producers on credit.R80 000 was owing at year-end.Operating expenses incurred during the year totalled R475 000.Innovate Veg owns its warehouse, which has a book value of R1.5 millionas at 30 June 2021 (comprising a total cost of R2 million and accumulateddepreciation of R500 000). The warehouse is depreciated at 5% perannum on the straight-line basis to a residual value of R1 000 000. Thisdepreciation charge is not included in the operating expenses mentionedabove.The three outlet stores are rented. The rental cost is included in theoperating costs mentioned above.

An income statement is a financial report that indicates the revenue and expenses of a business. It…

The warehouse is funded via a mortgage loan of R1 million, which bears interest at 10% per annum. Tax is levied at 28% on taxable income. At year-end, the company had R18 000 cash on hand. Required: 3.1 Prepare a statement of profit or loss and other comprehensive income. 3.2 Prepare the asset section of the statement of financial position.

The warehouse is funded via a mortgage loan of R1 million, which bears interest at 10% per annum. Tax is levied at 28% on taxable income. At year-end, the company had R18 000 cash on hand. Required: 3.1 Prepare a statement of profit or loss and other comprehensive income. 3.2 Prepare the asset section of the statement of financial position.

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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