The trial balance for Journey's End Ltd. is shown below: Retained Earnings Ordinary shares @ $3...
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The trial balance for Journey's End Ltd. is shown below: Retained Earnings Ordinary shares @ $3 5% Preference shares @ $6 General reserve 10% Debentures Sales Journey's End Ltd Trial balance as at 31 December 2021 Purchases Trade receivables Trade payables Inventory - January 1, 2021 General administrative expenses General selling and distribution cost Wages and salaries Long-term investment Land Equipment Accumulated depreciation - Equipment, January 1, 2021 Building Accumulated depreciation - Building, January 1, 2021 Bank Investment revenue debenture interest - 389,250 - 281,250 - 202,500 37,500 - 487,500 2,250,000 - 900,000 135,000 111,750 58,500 217,500 127,500 90,000 719,400 870,600 525,000 375,000 33,750 - - 262,500 17,250 50,250 37,500 4,089,750 4,089,750 Additional information: i. Closing inventory was valued at $48,750 ii. The company depreciates non-current assets as follows: a. Equipment - 10% on the reducing balance basis b. Buildings - 2% on the straight-line basis Expenses are apportioned as follows: V. vi. Administrative expenses Depreciation equipmen 70% Depreciation Buildings 60% Wages and salaries 80% Selling and distribution costs 30% 40% 20% iv. $9,000 of the wages and salaries was prepaid at year end Land was revalued at $950,000 on December 31, 2021 The corporation tax rate is 25% Required: Prepare a statement of comprehensive income, in accordance with the provisions of IAS 1. Supporting notes must be shown. The trial balance for Journey's End Ltd. is shown below: Retained Earnings Ordinary shares @ $3 5% Preference shares @ $6 General reserve 10% Debentures Sales Journey's End Ltd Trial balance as at 31 December 2021 Purchases Trade receivables Trade payables Inventory - January 1, 2021 General administrative expenses General selling and distribution cost Wages and salaries Long-term investment Land Equipment Accumulated depreciation - Equipment, January 1, 2021 Building Accumulated depreciation - Building, January 1, 2021 Bank Investment revenue debenture interest - 389,250 - 281,250 - 202,500 37,500 - 487,500 2,250,000 - 900,000 135,000 111,750 58,500 217,500 127,500 90,000 719,400 870,600 525,000 375,000 33,750 - - 262,500 17,250 50,250 37,500 4,089,750 4,089,750 Additional information: i. Closing inventory was valued at $48,750 ii. The company depreciates non-current assets as follows: a. Equipment - 10% on the reducing balance basis b. Buildings - 2% on the straight-line basis Expenses are apportioned as follows: V. vi. Administrative expenses Depreciation equipmen 70% Depreciation Buildings 60% Wages and salaries 80% Selling and distribution costs 30% 40% 20% iv. $9,000 of the wages and salaries was prepaid at year end Land was revalued at $950,000 on December 31, 2021 The corporation tax rate is 25% Required: Prepare a statement of comprehensive income, in accordance with the provisions of IAS 1. Supporting notes must be shown.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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