The following is the preliminary trial balance of Mantra Co. at 31 December 2017: Debit $'000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following is the preliminary trial balance of Mantra Co. at 31 December 2017: Debit $'000 Revenue (note 1) Cost of sales Administrative expenses Sales and distribution expenses Directors' remuneration Staff benefits expenses Finance expense (note 3) Dividend income Divic Noncurrent asset - at cost Freehold land Building Office building (under construction) Plant and machinery Research and Development Accumulated depreciation at 1 January 2017 (note 7) • Building Plant and Machinery . Research and development Investments (note 4) Inventory (note 2) Trade receivables Bank Trade payables 170 7% loan Bank overdraft (unsecured) Tax paid (note 6) Ordinary share capital 10% redeemable preference shares. Retained earnings as at 1 January 2017 Deferred tax liability 1 114,980 25,710 34,280 2,490 3,970 560 500,459 447,600 10,000 219,850 24,450 295,790 44,720 35,492 8,795 104,472 1,873,618 Credit $'000 395,960 19,798 167,600 87,350 12,450 27,483 12,000 577 215,000 127,000 795,910 12,490 1,873,618 Additional information 1. Included in the revenue is an order that has been recognised amounting to $687,000 which delivery was delayed to 7 January 2018 due to manufacturing issues. The term of the sale is on credit basis. Value of the goods have been included in the closing inventories 2. Closing inventories which were recognised at costs amounting to $451,900 was ascertained to be damaged and their net realisable value were $154,700 3. Finance expenses of $560,000 icludes: Interest on Bank overdraft Lease rentals Fair value through profit or loss The lease rentals were for a plant which was used 30% for administrative purpose and 70% for distribution 4. Fair Value of Investments comprise financial assets valued at: Fair value through other comprehensive income At amortised cost. Carrying Amount $'000 30,539 75,857 189.394 295,790 $'000 Fair value $'000 29,139 81,957 195,357 306,453 There were no purchases or disposals of any of these investments during the year. Fair value shown above is as at 31 December 2017 2 57 503 560 5. Dividends on preference shares for the year have not been provided. The preference shares are redeemable at holder's option.. 6. The tax paid account is related to the tax paid during the year for the current year. The current year's tax expense was estimated to be $100.67 million inclusive of an increase to deferred tax liability of $2.15 million of which $1,830,000 was related to financial assets at fair value through other comprehensive income. 7. Mantra Co. depreciates its assets on the following basis. The depreciation for the year has not been made: Building Plant and machinery Research and development Depreciation expenses based on Reducing Balance Cost Reducing Balance Annual Percentage (%) 2 10 20 8. On 1 January 2017, Mantra Co. borrowed $12 million for the construction of a building that is estimated cost $30 million and is expected to be completed in 2019. Only $5 milion was utilised during the year and the balance of $7 million was invested temporarily in a fixed deposit which yielded an interest of 5% per annum. Total interest on the borrowing of $12 million for the year 2017 was $0.84 million and has neither been paid nor recorded Required: (a) Prepare the statement of comprehensive Income for the year ended 31 December 2017. 3 (b) Prepare the statement of financial position for the year ended 31 December 2017. The following is the preliminary trial balance of Mantra Co. at 31 December 2017: Debit $'000 Revenue (note 1) Cost of sales Administrative expenses Sales and distribution expenses Directors' remuneration Staff benefits expenses Finance expense (note 3) Dividend income Divic Noncurrent asset - at cost Freehold land Building Office building (under construction) Plant and machinery Research and Development Accumulated depreciation at 1 January 2017 (note 7) • Building Plant and Machinery . Research and development Investments (note 4) Inventory (note 2) Trade receivables Bank Trade payables 170 7% loan Bank overdraft (unsecured) Tax paid (note 6) Ordinary share capital 10% redeemable preference shares. Retained earnings as at 1 January 2017 Deferred tax liability 1 114,980 25,710 34,280 2,490 3,970 560 500,459 447,600 10,000 219,850 24,450 295,790 44,720 35,492 8,795 104,472 1,873,618 Credit $'000 395,960 19,798 167,600 87,350 12,450 27,483 12,000 577 215,000 127,000 795,910 12,490 1,873,618 Additional information 1. Included in the revenue is an order that has been recognised amounting to $687,000 which delivery was delayed to 7 January 2018 due to manufacturing issues. The term of the sale is on credit basis. Value of the goods have been included in the closing inventories 2. Closing inventories which were recognised at costs amounting to $451,900 was ascertained to be damaged and their net realisable value were $154,700 3. Finance expenses of $560,000 icludes: Interest on Bank overdraft Lease rentals Fair value through profit or loss The lease rentals were for a plant which was used 30% for administrative purpose and 70% for distribution 4. Fair Value of Investments comprise financial assets valued at: Fair value through other comprehensive income At amortised cost. Carrying Amount $'000 30,539 75,857 189.394 295,790 $'000 Fair value $'000 29,139 81,957 195,357 306,453 There were no purchases or disposals of any of these investments during the year. Fair value shown above is as at 31 December 2017 2 57 503 560 5. Dividends on preference shares for the year have not been provided. The preference shares are redeemable at holder's option.. 6. The tax paid account is related to the tax paid during the year for the current year. The current year's tax expense was estimated to be $100.67 million inclusive of an increase to deferred tax liability of $2.15 million of which $1,830,000 was related to financial assets at fair value through other comprehensive income. 7. Mantra Co. depreciates its assets on the following basis. The depreciation for the year has not been made: Building Plant and machinery Research and development Depreciation expenses based on Reducing Balance Cost Reducing Balance Annual Percentage (%) 2 10 20 8. On 1 January 2017, Mantra Co. borrowed $12 million for the construction of a building that is estimated cost $30 million and is expected to be completed in 2019. Only $5 milion was utilised during the year and the balance of $7 million was invested temporarily in a fixed deposit which yielded an interest of 5% per annum. Total interest on the borrowing of $12 million for the year 2017 was $0.84 million and has neither been paid nor recorded Required: (a) Prepare the statement of comprehensive Income for the year ended 31 December 2017. 3 (b) Prepare the statement of financial position for the year ended 31 December 2017.
Expert Answer:
Related Book For
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
Students also viewed these accounting questions
-
The following is the preliminary trial balance of La LaBhd. at 31 December 2016: Revenue (note i,) Cost of sales Administrative expenses Sales and distribution expenses Director's remuneration Staff...
-
The following is the preliminary trial balance of La La Bhd. at 31 December 2016: Debit RM'000 Credit RM'000 197,980 Revenue (note i.) Cost of sales 114,980 Administrative expenses 18,570 Sales and...
-
The following information is the preliminary trial balance of Alpha Petrol Station Ltd for the year ended 31* December 2019. Debits (E) Credits () Sales 10,000,000 Land 1,800,000 Cash 552,500...
-
In a survey of 1,002 people, 701 (or 70%) said that they voted in the last presidential election (based on data from ICR Research Group). The margin of error was 3 percentage points. However, actual...
-
During its first year of operations, Gehrig Company had credit sales of $3,000,000, of which $400,000 remained uncollected at year-end. The credit manager estimates that $18,000 of these receivables...
-
Determine the optimal strategies for R and for C for the games with the payoff matrices of Exercises 1 and 2? 1. 2. -3 4 -2 -6 -4 4.
-
A metal surface is illuminated by light with a wavelength of \(350 \mathrm{~nm}\). The maximum kinetic energy of the emitted electrons is found to be \(1.50 \mathrm{eV}\). What is the maximum...
-
Just4U Company uses a job order cost system. The following data summarize the operations related to production for the month of January 20xx. a) Materials purchased on account: b) Materials...
-
Chocolaterie de Geneve, SA, is located in a French-speaking canton In Switzerland. The company makes chocolate truffles that are sold in popular embossed tins. The company has two processing...
-
Exercise 6.1 Configuring Memory on Paper Objective: a computer is not performing as well as it used to. Windows 10 tool would the technician get the user to open to quickly tell how much RAM is...
-
George is hoping to retire early but is unsure if he has earned enough credits. Which example explains the earliest age he can retire with Social Security benefits and the number of credits he needs?...
-
XYZ Inc offers a gift set to customers who send in $1.11 plus three coupon codes obtained from the purchase of the company's standard products. That is, a customer purchases three standard products...
-
If a long-term fixed-price contract is profitable in all periods, how is COGS calculated for the period?
-
With respect to other non-audit services by the AICPA, PCAOB & SEC: What is the AICPA position with respect to non audit services? What is the SEC and PCAB position with respect to non audit services?
-
Stock ABC has three possible returns in the next week: -10% (Probability: 40%), 0% (probability: 20%), 15% (probability: 40%). What is the variance of ABC?
-
In 4 years your spouse will need a new car, which you estimate at $20000. You are confident based upon what you have learned in this course that you can earn 8% annually on an investment portfolio....
-
Analyze each of company ratios using a. Trend Analysis b. Peer Analysis Also do a detailed comparison Ratios Current Ratio Quick Ratio Networking capital Debt to Equity Ratio Equity ratio Debt Ratio...
-
A woman at a point A on the shore of a circular lake with radius 2 mi wants to arrive at the point C diametrically opposite on the other side of the lake in the shortest possible A time. She can walk...
-
Based upon the data shown in Exercises 51 and 52, comment on the operating performance of CVS in comparison to Walgreen.
-
On December 15, 2004, Las Vegas Sands Corp., owner of the Venetian Hotel in Las Vegas, conducted an initial public offering of 23.8 million shares of $0.001 par value common stock at a price of $29...
-
Data on the physical inventory of Timberline Company as of December 31, 2007, are presented below. Quantity and cost data from the last purchase invoice of the year and the next-to-the-last purchase...
-
There are 24,627 species of fish on Earth. Decide whether the statement makes sense (or is clearly true) or does not make sense (or is clearly false). Explain clearly.
-
An American Airlines agent tells you that you must pay a surcharge because your checked bag weighs 23.018 kg, which exceeds the limit of 23 kg, and that theres no doubt that the scale is correct...
-
The Jenkins supermarket manager claims that the scanning errors on purchased items are random, and about half of the errors are in favor of the supermarket. Decide whether the statement makes sense...
Study smarter with the SolutionInn App