The following is the trial balance of Cornwall Distributers Limited as at the 31 December 2019...

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The following is the trial balance of Cornwall Distributers Limited as at the 31 December 2019 Trial Balance as at 31 December 2019 300 000 $1 Ordinary shares 200 000 8% $1 Preference shares Share Premim General Reserve Retained earnings 10% Debentares Debenture interest Land and Buildings at cost Machinery at cost Equipment Provision for Depreciation: Machinery at cost Equipment Provision for bad debts Cash and Bank Rent and rates Directors salaries Advertising expense Wages and Salaries Overheads Bad debts Trade receivables and Payables Purchases and Sales Stock 1.1.2019 Discounts DR $ 7,000 8,000 881,000 300,000 200,000 30,000 12,000 260,000 34,000 84,000 240,000 21,000 165,000 480,000 120,000 12,000 2,854,000 CR $ 300,000 200,000 50,000 20,000 100,000 100,000 80,000 24,000 210,000 1,750,000 20,000 2,854,000 Notes at 31 December 2019: 1) Provide for bad debts at 8% of receivables 2) Wages prepaid $16 000 3) Overheads, wages & salaries and rent & rates are to be shared 40% Selling and Distribution and 60% administration. 4) The directors proposed the following: a) To transfer $18000 to general reserve b) To pay the preference dividend and to declare an ordinary dividend of 10% 5) Corporation tax for the year is estimated at $85 000 6) Cost of stock at 31 December 2018, $70 000 (Net realizable value $60 000) 7) Depreciate Machinery at 10% of cost and Equipment at 5% on the reducing balance. (shared 30% to selling and distribution and 70% to administration) REQUIRED: (a) Prepare the Statement of Comprehensive Income for the year ended 31 December 2019 (b) Prepare the statement of Changes in Equity as at 31 December 2019 (21 marks) (4 marks) (c) The Statement of Financial Position as at 31 December 2019 (12 marks) [Total 37 marks] The following is the trial balance of Cornwall Distributers Limited as at the 31 December 2019 Trial Balance as at 31 December 2019 300 000 $1 Ordinary shares 200 000 8% $1 Preference shares Share Premim General Reserve Retained earnings 10% Debentares Debenture interest Land and Buildings at cost Machinery at cost Equipment Provision for Depreciation: Machinery at cost Equipment Provision for bad debts Cash and Bank Rent and rates Directors salaries Advertising expense Wages and Salaries Overheads Bad debts Trade receivables and Payables Purchases and Sales Stock 1.1.2019 Discounts DR $ 7,000 8,000 881,000 300,000 200,000 30,000 12,000 260,000 34,000 84,000 240,000 21,000 165,000 480,000 120,000 12,000 2,854,000 CR $ 300,000 200,000 50,000 20,000 100,000 100,000 80,000 24,000 210,000 1,750,000 20,000 2,854,000 Notes at 31 December 2019: 1) Provide for bad debts at 8% of receivables 2) Wages prepaid $16 000 3) Overheads, wages & salaries and rent & rates are to be shared 40% Selling and Distribution and 60% administration. 4) The directors proposed the following: a) To transfer $18000 to general reserve b) To pay the preference dividend and to declare an ordinary dividend of 10% 5) Corporation tax for the year is estimated at $85 000 6) Cost of stock at 31 December 2018, $70 000 (Net realizable value $60 000) 7) Depreciate Machinery at 10% of cost and Equipment at 5% on the reducing balance. (shared 30% to selling and distribution and 70% to administration) REQUIRED: (a) Prepare the Statement of Comprehensive Income for the year ended 31 December 2019 (b) Prepare the statement of Changes in Equity as at 31 December 2019 (21 marks) (4 marks) (c) The Statement of Financial Position as at 31 December 2019 (12 marks) [Total 37 marks]

Answer rating: 100% (QA)

Answer a Statement of Comprehensive Income for the year ended 31 December 2019 Revenue Sales 1750000 ... View the full answer