The following is the trial balance of Sealy Limited, a company with a 31 OCTOBER year...

  

 

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The following is the trial balance of Sealy Limited, a company with a 31 OCTOBER year end. Sealy LTD TRIAL BALANCE AT 31 OCTOBER 2021 Credit losses expense Fuel and car maintenance costs on CEO official car Office stationery used Finance costs Cost of sales Provisional tax paid Employee costs (Administration- 30%, Marketing, and sales- 70%) Dividends paid Depreciation- administration building Bank Investments in listed shares at cost Trade debtors Property, plant, and equipment, Trademarks Inventories Share issue costs Accumulated depreciation: plant and equipment at 31.10.21 Dividends received Profit on sale of vehicle Sales Retained earnings (01/11/2020) Creditors Accrued expense Current portion of long-term loan Long-term loan Issued preference share capital (31/10/2021) Issued ordinary share capital ● . Debit R ● 2 300 20 480 9 100 4 000 265 800 14 750 580 000 13 000 48 400 120 100 20 000 1 700 1 332 500 130 700 33 060 6 800 2 602 690 Additional information: Trademarks were acquired on 31 March 2021. The directors estimate trademarks to have an estimated useful life of 5 years. Amortisation expense has not been provided for. Credit R 439 800 5 500 14 000 1058 900 789 090 15 000 4 400 10 000 90 000 105 000 71 000 2 602 690 The 10% preference shares are redeemable any time after September 2020 at the option of the board. The directors propose preference dividend to be paid. No preference dividends are in arrears. On 12 October 2021, 35 000 ordinary shares were issued at R2.00 each for cash from existing shareholders. The board resolved on 25 October 2021 to pay, in addition to the interim dividend, final dividend of R19 000 to ordinary shareholders on record on 16 November 2021. On 30 June 2021, the redeemed preference shares with stated value of R20 000 at a premium of 1 per cent. The full cash payment was credited to the relevant issued share capital account • The financial statements of Sealy Ltd will be authorised for issue on 31 January 2022. • Company tax is 28c in R1.00 and investments in shares of other company is undertaken on temporary basis. Required: a) Prepare the statement of comprehensive income of Sealy Limited for the year ended 31 October 2021, using functional method. Comparatives are NOT required. [10 marks] b) Prepare the statement of changes in equity of Sealy Ltd for the year ended 31 October 2021 in accordance with IFRS. Comparatives are NOT required. [9 marks] c) Prepare the statement of financial position of Sealy Ltd as at 31 October 2021, in accordance with IFRS. Comparatives are NOT required. [12 marks] The following is the trial balance of Sealy Limited, a company with a 31 OCTOBER year end. Sealy LTD TRIAL BALANCE AT 31 OCTOBER 2021 Credit losses expense Fuel and car maintenance costs on CEO official car Office stationery used Finance costs Cost of sales Provisional tax paid Employee costs (Administration- 30%, Marketing, and sales- 70%) Dividends paid Depreciation- administration building Bank Investments in listed shares at cost Trade debtors Property, plant, and equipment, Trademarks Inventories Share issue costs Accumulated depreciation: plant and equipment at 31.10.21 Dividends received Profit on sale of vehicle Sales Retained earnings (01/11/2020) Creditors Accrued expense Current portion of long-term loan Long-term loan Issued preference share capital (31/10/2021) Issued ordinary share capital ● . Debit R ● 2 300 20 480 9 100 4 000 265 800 14 750 580 000 13 000 48 400 120 100 20 000 1 700 1 332 500 130 700 33 060 6 800 2 602 690 Additional information: Trademarks were acquired on 31 March 2021. The directors estimate trademarks to have an estimated useful life of 5 years. Amortisation expense has not been provided for. Credit R 439 800 5 500 14 000 1058 900 789 090 15 000 4 400 10 000 90 000 105 000 71 000 2 602 690 The 10% preference shares are redeemable any time after September 2020 at the option of the board. The directors propose preference dividend to be paid. No preference dividends are in arrears. On 12 October 2021, 35 000 ordinary shares were issued at R2.00 each for cash from existing shareholders. The board resolved on 25 October 2021 to pay, in addition to the interim dividend, final dividend of R19 000 to ordinary shareholders on record on 16 November 2021. On 30 June 2021, the redeemed preference shares with stated value of R20 000 at a premium of 1 per cent. The full cash payment was credited to the relevant issued share capital account • The financial statements of Sealy Ltd will be authorised for issue on 31 January 2022. • Company tax is 28c in R1.00 and investments in shares of other company is undertaken on temporary basis. Required: a) Prepare the statement of comprehensive income of Sealy Limited for the year ended 31 October 2021, using functional method. Comparatives are NOT required. [10 marks] b) Prepare the statement of changes in equity of Sealy Ltd for the year ended 31 October 2021 in accordance with IFRS. Comparatives are NOT required. [9 marks] c) Prepare the statement of financial position of Sealy Ltd as at 31 October 2021, in accordance with IFRS. Comparatives are NOT required. [12 marks]

Answer rating: 100% (QA)

a Sealy Limited Statement of comprehensive income For the year ended 31 October 2021 Revenue Sales 1... View the full answer