Accounting Below is the trial balance for Amazing Graze Ltd, a Singapore-based high-tech farm, on 31 December

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Question:

Accounting Below is the trial balance for Amazing Graze Ltd, a Singapore-based high-tech farm, on 31 December 2021:

Notes:

(i) Amazing Graze Ltd made a 1 for 4 bonus issue on 31 December 2021, which has not yet been recorded in the above trial balance. Amazing Graze Ltd intends to utilize the share premium as far as possible in recording the bonus issue.

(ii) Amazing Graze Ltd’s property had previously been revalued upwards, leading to the balance on the revaluation surplus at 1 January 2021. The property had a remaining life of 20 years on 1 January 2021. At 31 December 2021, the property was valued at £12,656,000. No entries have yet been made to account for the current year’s depreciation charge or the property valuation on 31 December 2021. Amazing Graze Ltd does not make an annual transfer from the revaluation surplus in respect of excess depreciation

(iii) It has been discovered that inventory totaling £80,000 had been omitted from the final inventory count in the above trial balance.

Required

(a) With reference to relevant international accounting standards and accounting concepts, explain the correct treatment in the financial statements for each of the items (i)- (iii) above.

Show any journal entries that will be necessary to update the trial balance at 31 December 2021 (It is not necessary to produce an updated trial balance). (b) Calculate the adjusted profit for Amazing Graze Ltd for the year ended 31 December 2021.

(c) Prepare the statement of changes in equity for Amazing Graze Ltd for the year ended 31 December 2021.Property carrying amount, 1 January 2021 Ordinary shares £1.00 at 1 January 2021 Other components of equity (Share premium).