Make an income statement for Melchester Rovers for 20X1. All the information needed is below:

Melchester Rovers was set up as a football club on 1 January 20X1. On that date, it issued 200 million £1 shares to investors for cash.

During 20X1 the following took place (assume all transactions took place on 1 January)

Purchased a stadium for £80 million, with a 20-year expected lifespan.

Borrowed £50 million from a bank, repayable in 20X6. Interest is payable at 12% at the end of the year.

Signed 10 players for a total of £40 million on 4-year contracts, and 6 players for a total of £30 million on 5-year contracts.

Sold 45,000 season tickets to fans for £1,800 each. The season tickets last for three years.

Signed a 2-year sponsorship deal with an American car company for £60 million. The car company had paid £10 million by 31 December 20X6.

Paid player wages of £21 million

Paid other overheads of £4 million.

Answer rating: 100% (QA)

Particulars Amount Amount Income 1 Season ticket... View the full answer