$($please note the corrections underlined on note M and note N$)$X Limited is a fictitious company. Any similarity to any company registered in Jamaica or any company listed on the Jamaica Stock Exchange is entirely coincidental and unintentional. The persons and transactions in this project are fictitious. Any similarity to any person living or dead and to any transaction which has occurred or might occur in the future is entirely coincidental and unintentional.The company is incorporated as a public company under the laws of Jamaica and its shares are quoted on the Jamaica Stock Exchange. The company started as a family business, owned by siblings, P$.$J$.$ Wright and Eugenia Wright, that was incorporated on September $15,1992$ and started operating on November $1,1992.$ The initial public offering $($IPO$)$ of the company was on December $20,1998.$ In $1992,$ the company started as a middle man to arrange sales of fruits and salads to hotels. Since the year $2000,$ it has grown beyond those operations and now as other profitable activities. This includes manufacturing and sale of processed and packaged Jamaican fruits and vegetables including frozen mango, dried fruits, pre$-$cut and packaged salads etc. During its first year of operation in $1992$ the company opened one office in Montego Bay. Between $1992$ and $1998,$ the company opened $2$ warehouses and one processing plant in Trelawney. In marketing the IPO, the directors promised the company would expand into a retailing space. This future was realized and the company currently has owns three manufacturing plants across the island. On the corporate side, the company moved the head office from Montego Bay to Kingston but still maintains an office in the former. In January $2019,$ X Limited announced a plan to target new markets and increase the export of their products. These plans were put on hold in $2020$ due to the World Health Organization $($WHO$)$ declaring the novel coronavirus, COVID$-19$ to be a global pandemic on March $11,2020.$ The lockdowns, stay at home orders, no movement days, closing of the ports and other measures implemented by the Jamaican Government negatively affected economic activity in Jamaica. Similar measures were implemented by Governments in other Caribbean countries and Governments right across the globe disrupting business operations worldwide. The measures implemented by the Jamaican Government to control the spread of the virus were gradually relaxed or lifted in $2021.$ This trend has continued into the financial year ended December $31,2021.$ The Jamaican Government lifted all COVID$19$ protocols under the Disaster Risk Management Act $($DRMA$)$ effective March $18,2022.$ The company plans to open its first international office in Miami, Florida in the summer of $2024.$ The demand for healthy foods and snacks has increased significantly since the covid pandemic as individuals and governments look for ways to maintain a healthy lifestyles. In response, during the pandemic, the company partnered with $($fruit$/$ vegetable$)$ farmers to create a new product to attract more international and local vendors. They have produced samples of the products and there is a lot of excitement amongst the research and development team for the future potential. The company maintains its accounts using the historical cost convention, modified for any revaluation. The companys year end is December $31.$ The auditors, McKay and Greene, completed their audit for the financial year ended December $31,2023$ and issued an unqualified audit report on March $20,2024.$ The financial statements were approved by the Board of Directors on March $27,2024.$ The auditors are willing to continue in office for the financial year ending December $31,2024.$ The registered office of the company is located at $00$ Harbour Street, Kingston, Jamaica. The annual general meeting of the company is scheduled for Monday, May $15,2024,$ at $10$:$30$ a$.$m$.$ at Pegasus Hotel, $81$ Knutsford Boulevard, Kingston $5,$ Jamaica. The notice for the annual general meeting was sent to the shareholders by the Company Secretary, $($student representative$)$ on April $15,2024.$a$)$Audit fees for the financial year ended December $31,2023$ are estimated at $$12,950,000.$ Under provision of audit fees for the prior year amounted to $$25,000.$ Audit fees are not yet reflected in the accounts.b$)$The Directors on November $1,2023,$ approved a dividend of $$0\mathrm{.}10$ per share in respect of the financial year ended December $31,2023.$ The total amount for dividend payment was placed in an escrow account in which the cash is restricted from the X Limiteds use. The amount is to be distributed on March $2,2024.$ The transactions involved for the above have not yet been reflected in the accounts.c$)$The income tax rate is $25\%,$ and the corporation tax rate is $331/3\%.$d$)$Round all calculations to the nearest $$1,000.$e$)$The foreign exchange bank account is kept at JMMB$,$ the salaries bank account is kept at National Commercial Bank and the general bank account is kept at Bank of Nova Scotia.f$)$The interest income and the dividend income were received net of income tax. Only the net amounts received were reflected in the accounts.g$)$The allowance for bad debt is a specific allowance.h$)$Transactions in foreign currencies have been converted at the rates of exchange ruling at the dates of those transactions and foreign currency bank balances have been translated at the rates of exchange ruling on that date.i$)$During the current financial year, a lawsuit was filed against the company by a customer. A hotel is claiming damages amounting to $$12$ million arising out of an alleged breach of contract by the company to supply fresh vegetables to them. The companys lawyer Jimmy Wexler is of the opinion that the plaintiffs $($customers$)$ claim against the company is unlikely to succeed.j$)$The donations include a monthly gift of $$200,000$ to Food for the Poor Jamaica. The remaining donations were used to pay fees to Care Clinic for giving general examinations to families of farmers in a community that X Limited has partnered with for years. k$)$On December $31,2023,$ commitments for capital expenditure not contracted for and for which no provision has been made in the accounts amounted to $$28,000,000.$l$)$The general manager of a major hotel chain made a complaint via email on December $30,2022,$ about the poor quality of a tomato shipment. On January $1,2024,$ the CEO of X Limited made a verbal commitment to the customer to give new products at a cost of $$100,000$ for the inconvenience.m$)$On December $31,2023,$ Lawson & Peart, professional valuators, valued the land at $$80,000,000$ and the investment property at $$60,000,000.$ The investment property is an apartment purchased for the purpose of rental and capital appreciation. The investment property was purchased on January $1,2023$ for $$550,000,000.$ These revaluations are not yet reflected in the accounts. A new tenant was approved for the investment property on December $15,2023.$ The rental agreement is for $2$ years, starting January $1,2024,$ with a monthly payment of $$1,200,000.$ On December $31,2023,$ the tenant made a payment via cheque consisting the security deposit $($which is worth two months rent$)$ as well as the first months rent. This transaction is not yet reflected in the accounts and rental income receipts should be reflected in the general bank account.n$)$During the financial year ended December $31,2023,$ two $(2)$ warehouses were acquired. On January $1,2023,$ one $(1)$ warehouse was acquired at a capitalised cost of $$32,000,000$ under a right of use lease arrangement $($already reflected in the accounts$).$ The lease period is five $(5)$ years.The other warehouse was acquired on December $31,2023,$ at a capitalized cost of $$16,000,000.$ The payment for this warehouse was made from the general bank account. The payment is not yet reflected in the accounts.o$)$Directors emoluments include $$260,000$ for directors fees. The directors retiring by rotation pursuant to article $90$ of the Articles of Incorporation are Joelene Myers, Rosie Brown and Derrick Camps.p$)$The current tax charge$/$ payable for the year is estimated at $$312,765,000$ by the tax accountant, after all adjustments were made. The corporation tax is not yet reflected in the accounts.q$)$Corporation tax under provision for the year ended December $31,2023,$ amounted to $$25,000.$ The information about the under provision was not received until December $2023.$ The under provision is not yet reflected in the accounts.r$)$Deferred taxation relating to the profit and loss section of the Statement of Comprehensive Income, should be decreased by $$275,000$ for the financial year ended December $31,2023.$ The adjustment is not yet reflected in the accounts.s$)$Short term investments comprise: $$20,000,000$ fixed deposit that will mature in $30$ days, and $$1,450,000$ that will mature in $232$ days.t$)$Each year on December $31,$ $$11$ million $($principal$)$ is payable in respect of the debenture loans until the debentures are repaid. The amount due for December $31,2023,$ was paid on that date and the amount due for December $31,2022$ was paid on time. The interest on the debenture loans is payable on a quarterly basis, on March $31,$ June $30,$ September $30,$ and December $31.$ The interest for the quarter ended December $31,2023,$ was not paid until January $8,2024.$ No accrual was made at the year end for the December $31,2023,$ for outstanding interest. The interest for the quarter of December $31,2022,$ was paid on January $6,2023,$ and is included in the interest expense account for the current year. The interest for the last quarter of December $31,2022$ was properly accrued in the prior year accounts. The debentures are unsecured. Interest is calculated on the reducing balance basis.u$)$Depreciation is calculated on property, plant and equipment and the right of use asset using the straight$-$line method of depreciation at rates estimated to write off the assets over their expected useful lives as follows:Furniture & Fittings$10\mathrm{.}0\%$Computer Equipment$20\mathrm{.}0\%$Motor Vehicles$20\mathrm{.}0\%$Warehouses$20\mathrm{.}0\%$Plant & Buildings$2\mathrm{.}5\%$Right of Use AssetLength of leaseThe depreciation charge for the current financial year is already reflected in the accounts. The accounting clerk charged depreciation on the warehouses acquired under the right of use asset lease arrangement using the straight$-$line method, at a rate of $20\%.$ This right of use asset is included in the Warehouse Account. No depreciation was charged on the warehouse acquired on the last day of the financial year.v$)$At December $27,2023,$ Board of Directors meeting the directors decided to sell some of the companys long$-$term investments. $$000$Unquoted investments $1,375$ SellGovernment of Jamaica securities $1,100$ Hold $2,475$ w$)$Closing inventory on December $31$: $20232022$$$000$ $$000$Food Safety Packaging $23,54020,845$ Chemicals and food dyes $67,21085,800$ Agricultural produce $143,275251,955234,025358,600$ x$)$Staff Costs$20232022$$$000$$$000$Salaries & wages$534,490451,550$ Staff benefits Statutory contributions $18,1507,260$ Other $3,8501,430$ Average number of employees: Full time $8060$ Part time $2520$ Contractors & their employees $3150$y$)$Dividends and stock price$2023202220212020$$$000$$$000$$$000$$$000$Dividends $($gross$)57,750--2023202220212020$Stock price at year end $$14\mathrm{.}82$ $$13\mathrm{.}41$ $$12\mathrm{.}85$ $$11\mathrm{.}90$ Other information:Account number $3101$ is the cash sales account for computers, printers, computer parts, and computer software. Account number $3104$ is the sales returns account for computers, printers, computer parts, and computer software. Other relevant accounts are:Account no$.$Description$1113$Current restricted cash$2103$Corporation tax payable account$2104$Provision account$2105$Ordinary dividend payable account$2107$Other payables account$2303$Fair value reserve account$3206$Other income account$4216$Audit fees account$4217$Taxation account$4218$Corporation tax under provision accounti.Insurance, utilities, rent, bank charges, interest, short term lease, stationery and office supplies, directors emolument, and depreciation, except motor vehicle depreciation should be classified under administrative expenses. ii$.$Local travelling, discount allowed, motor vehicle depreciation and lease finance charges should be classified under selling and distribution expenses. iii.Donation and audit fees should be classified under other expenses. iv$.$Forty percent of salaries and wages should be classified under administrative expenses and sixty percent should be classified under selling and distribution expenses. v$.$Forty percent of staff benefits should be classified under administrative expenses and sixty percent should be classified under selling and distribution expenses.Unadjusted trial balance on December $31,2023$Note: adjusted figures noted in red. Only adjusted in the Trial BalanceA$/$CDescriptionDebitCredit$$\text{'}000$$$\text{'}0001001$Petty cash float $5501002$Bank $($general$)41,7001003$Bank $($salaries$)6,8201004$Bank $($foreign currency$)12,9251106$Trade debtors $2,7501107$Allowance for bad debts $551109$Prepayments $1,6501111$Short term investments $21,4501112$Long term investment $2,4751201$Investment property $550,0001201$Furniture & fittings $7,0401202$Accumulated depreciation furn. & fitt. $1,9801203$Equipment$52,8001204$Accumulated depreciation Equipment