Land Buildings Cost Investments in listed companies Buildings Accumulated depreciation Inventories Accounts receivable Bank ESKIMO LIMITED...

  

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Land Buildings Cost Investments in listed companies Buildings Accumulated depreciation Inventories Accounts receivable Bank ESKIMO LIMITED TRIAL BALANCE AT 31 DECEMBER 20x8 200 000 100 000 235 000 120 000 250 000 Credit 40 000 23 000 225 000 72 800 d) Prep Inter Ques ABC guide Accounts payable 25 000 The Current tax payable Ordinary share capital Long-term borrowings: Loan from AB Bank 240 000 20 000 AB Retained earnings (1/1/20X8) Revaluation surplus (1/1/20X8) 15 000 130 000 TR Dividends Sales Interest income Cost of sales Bad debts expense Fuel expense Depreciation expense Equipment rental expense Marketing expense Repairs and maintenance expense Salaries expense Interest on bank overdraft Income tax expense 300 000 780 000 35 500 20 000 40 000 25 000 113 000 22 000 30 000 50 000 9 500 61 800 1 591 300 1591 300 . Additional information: Share capital constitutes 120 000 ordinary shares of no par value. 20 000 shares were issued for C40 000 on the first day of the year. Eskimo Limited classifies expenses according to their function. Management categorise the functions of the business into the areas of sales, administration and distribution. Salaries of C30 000 relate to the administrative function and C20 000 to the distribution function Depreciation on buildings is allocated C10 000 to the administrative function and C15 000 to the distribution function. The bad debts and marketing expenses relate to the administration function. The repairs and maintenance and fuel expenses relate to the distribution function. The company rents all of its equipment on short-term rentals; the rent expense is allocated equally to the administration and distribution functions. Dividends of C15 000 in respect of the year ended 31 December 20X7 were declared and paid during January 20X8. Dividends of C20 000 in respect of the year ended 31 December 20X8 were declared on 15 January 20X9. There are no movements in other comprehensive income. Required: a) Prepare the statement of comprehensive income of Eskimo Limited for the financial year ended 31 December 20X8 in accordance with International Financial Reporting Standards. b) Prepare the statement of changes in equity of Eskimo Limited for the financial year ended 31 December 20X8 in accordance with International Financial Reporting Standards. Land Buildings Cost Investments in listed companies Buildings Accumulated depreciation Inventories Accounts receivable Bank ESKIMO LIMITED TRIAL BALANCE AT 31 DECEMBER 20x8 200 000 100 000 235 000 120 000 250 000 Credit 40 000 23 000 225 000 72 800 d) Prep Inter Ques ABC guide Accounts payable 25 000 The Current tax payable Ordinary share capital Long-term borrowings: Loan from AB Bank 240 000 20 000 AB Retained earnings (1/1/20X8) Revaluation surplus (1/1/20X8) 15 000 130 000 TR Dividends Sales Interest income Cost of sales Bad debts expense Fuel expense Depreciation expense Equipment rental expense Marketing expense Repairs and maintenance expense Salaries expense Interest on bank overdraft Income tax expense 300 000 780 000 35 500 20 000 40 000 25 000 113 000 22 000 30 000 50 000 9 500 61 800 1 591 300 1591 300 . Additional information: Share capital constitutes 120 000 ordinary shares of no par value. 20 000 shares were issued for C40 000 on the first day of the year. Eskimo Limited classifies expenses according to their function. Management categorise the functions of the business into the areas of sales, administration and distribution. Salaries of C30 000 relate to the administrative function and C20 000 to the distribution function Depreciation on buildings is allocated C10 000 to the administrative function and C15 000 to the distribution function. The bad debts and marketing expenses relate to the administration function. The repairs and maintenance and fuel expenses relate to the distribution function. The company rents all of its equipment on short-term rentals; the rent expense is allocated equally to the administration and distribution functions. Dividends of C15 000 in respect of the year ended 31 December 20X7 were declared and paid during January 20X8. Dividends of C20 000 in respect of the year ended 31 December 20X8 were declared on 15 January 20X9. There are no movements in other comprehensive income. Required: a) Prepare the statement of comprehensive income of Eskimo Limited for the financial year ended 31 December 20X8 in accordance with International Financial Reporting Standards. b) Prepare the statement of changes in equity of Eskimo Limited for the financial year ended 31 December 20X8 in accordance with International Financial Reporting Standards.

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To solve this problem I will prepare the statement of comprehensive income and the statement of changes in equity for Eskimo Limited for the financial ... View the full answer