Meat Limited Trial Balance for the year ended December 31, 2017 as follows: 10% Preference Share...

  

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Meat Limited Trial Balance for the year ended December 31, 2017 as follows: 10% Preference Share Capital Ordinary share capital General reserves 15% Debentures Accumulated profit & loss as January 1, 2017 Revenues Cost of sales Debenture interest paid for 2017 Salaries Insurance Utilities expense Maintenance expense Rental income Rental expense Equipment Provision for depreciation on equipment Trade receivables Cash & bank Closing inventory Trade payables Dividends paid Debit $ 3,182,800 37,500 681,250 66,325 109,265 26.110 110,000 250,000 681,350 1,032,400 861,010 Credit 200,000 800,000 7,625 500,000 751,010 4,750.500 17,875 100,000 86,000 175,000 7,213,010 7,213,010 Additional information: $200,000 of the Debenture will be repaid on March 31, 2018. Maintenance expense unpaid on December 31, 2017 amounts to $1,600. Rental income for December 2017 amounting to $1,625 was received in January 2018. Insurance prepaid for 2017 amounting to $12,000. Provide for corporation tax of $137,280 for 2017. Transfer $5,000 to general reserves. Weighted average number of ordinary shares in issue during the financial year amounted to $800,000. Provide for depreciation on the equipment. Depreciation is being provided for on the reducing balance basis at a rate of 20% per annum. Required: a) Prepare the Statement of Profit or Loss for the year ended December 31, 2017. b) Prepare the Statement of Financial Position as at December 31, 2017. (30 marks) Meat Limited Trial Balance for the year ended December 31, 2017 as follows: 10% Preference Share Capital Ordinary share capital General reserves 15% Debentures Accumulated profit & loss as January 1, 2017 Revenues Cost of sales Debenture interest paid for 2017 Salaries Insurance Utilities expense Maintenance expense Rental income Rental expense Equipment Provision for depreciation on equipment Trade receivables Cash & bank Closing inventory Trade payables Dividends paid Debit $ 3,182,800 37,500 681,250 66,325 109,265 26.110 110,000 250,000 681,350 1,032,400 861,010 Credit 200,000 800,000 7,625 500,000 751,010 4,750.500 17,875 100,000 86,000 175,000 7,213,010 7,213,010 Additional information: $200,000 of the Debenture will be repaid on March 31, 2018. Maintenance expense unpaid on December 31, 2017 amounts to $1,600. Rental income for December 2017 amounting to $1,625 was received in January 2018. Insurance prepaid for 2017 amounting to $12,000. Provide for corporation tax of $137,280 for 2017. Transfer $5,000 to general reserves. Weighted average number of ordinary shares in issue during the financial year amounted to $800,000. Provide for depreciation on the equipment. Depreciation is being provided for on the reducing balance basis at a rate of 20% per annum. Required: a) Prepare the Statement of Profit or Loss for the year ended December 31, 2017. b) Prepare the Statement of Financial Position as at December 31, 2017. (30 marks)

Answer rating: 100% (QA)

a Statement of Profit or Loss for the year ended December 31 2017 Revenues 4750500 Cost of sales ... View the full answer