Sylvio plc has extracted its year-end Trial Balance as shown below, after after making most of the year-end adjustments. You are informed as follows:

(a) Buildings, not depreciated until now, need to be depreciated as follows: For 8 years until 31 December 2010: £144,000. For year ended 31 December 2011: £18,000. As at 31 December 2011 the market value of land and buildings has been identified as £1.5 million. Directors wish to report this asset at market value.

(b) The motor vehicles are depreciated at 25% p.a. on the reducing balance method. Office equipment, used for administration, is depreciated at 10% per annum on cost. However, on 1 January 2011 the directors decided that to keep up with changes in technology equipment needed to be replaced by 31 December 2013.

(c) Corporation tax on the year’s profit is estimated at £55,000.

(d) Directors have declared a dividend of 4p per share.

Required:

(a) Prepare the Statement of comprehensive income for the year ended 31 December 2011

(b) with the Statement of changes in equity and

(c) the Statement of financial position as at that date.

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Trial Balance as at 31 December 2011 £'000 £'000 348 194 278 Receivables/payables Distribution cost Admin. expenses Sales Cost of goods sold Land and building Motor vehicles Office equipment Accumulated depreciation to 31 December 2010: Office equipment Motor vehicles Inventory - 31.12.2011 Cash and bank Share capital - £1 each Share premium Retained earnings - 3,165 1,200 440 540 395 22 - - 412 4,024 324 240 - 1,200 50 332 6,582 6,582