Trial balance of Fresco as at 31.3.20X2 as belows:

Debit Credit $'000 $'000

Equity shares of $1 each 45,000 (Cr)

Share premium 74,200 (Cr)

Retained earnings at 1 April 20X1 5,100 (Cr)

Property - at cost 48,000 (Dr)

Intangible asset 47,500 (Dr)

Investment property -fair value at 1 April 20X1 10,000 (Dr)

Accumulated amortisation of intangbile asset at 1 April 20X1 16,000 (Cr)

Accumulated depreciation of machine at 1 April 20X1 19,200 Inventory at 1 April 20X1 25,200 (Dr)

Trade receivables 28,500 (Dr)

Bank 1,400 (Dr)

Trade payables 27,300 (Cr)

Revenue 280,800 (Cr)

Cost of sales 280,800 (Dr))

Distribution costs 16,100 (Dr)

Administrative expenses 26,900 (Cr)

Bank interest 300 (Cr)

Interest income 250 (Cr)

Supporting note:

Note 1 Closing inventory include 500 computer screen at $.... , however these inventory has impaired due to …........, and this lead to net realisable value of these items should be $..........

Note 2: The machine is ….......... (detailed description of the machine) the machine has initial useful life of 5 years, however at at 1 April 20X1 the entity revised its useful life to ….... because …...........

Note 3: At 1 April 20X1the entity perform an reseach and development project in ….......... these project incurred research cost of $....... at …....., the project move to development project because …......... cost of the project $....... at …........, the development of project complete because ….........

Note 4: At entity has an investment property is a building for rental the buidling has 10 floors with total usage arear of ….... m2 at year end fair value of the building was …......... Because …........

Note 5: At at 1 April 20X1, the entity assess impairment of property because …...... at this date the entity determine value in use of the property is ….... Because at this date the entity determine fair value less cost to sell of the property is ….... Because …......

Note 6: At the Apir 20X1, the entity sign a contract of sale …........ (with 2 performance obligations are …...) the customer has paid $.... For the contract however the entity has just complete the first PO because …... the second PO the entity has still not completed because ….. the entity has recorded full the amount received from the customer in the revenue above

Note 7: In May 20X1, there is an event …...... Is the adjusting events because …....... these event lead to adjust value of closing inventory to …....... Because …......

Required:

1, Prepare statement of profit or loss and other comprehensive income (4 marks)

2, Prepare statement of financial position (4 marks)

3, Prepare statement of cash flow (4 marks)

Note: At each note (from Note 1 to Note 5), student need to explain for the data that he/she fills in the “…..”, and show the workings that give to the final figures in financial statements.

Answer rating: 100% (QA)

The term profit and loss PL statement refers to a financial statement that summarizes the revenue costs and expenses incurred during a specified period usually a quarter or fiscal year These records p... View the full answer