The trial balance of Alfa shows the following balances at 31 December: (the table) Additional information: (1
Question:
The trial balance of Alfa shows the following balances at 31 December: (the table) Additional information: (1 )Inventories at 31 December 2021 were valued at $50,000. (2) Depreciation charges (plant and equipment) for the year amounting to $27,000 and $5,000 should be included in distribution costs and administrative expenses, respectively. (3) The income tax rate is 20%. (4) A final dividend of $0.50 per share was declared on 31 March 2022. (5) There were no disposals of any non-current assets during the year. A delivery vehicle was purchased on credit for $9,000 on 30 December 2021. No entries have yet been made to record this. (6) Insurance for delivery vehicles is to accrued as $2,000. (7) Receivables totalling $20,000 are to be written off (8) During the year the company issued a further 25,000 shares at $1.20. No entries have yet been made to record this. (9) Bonus for administration director for 2021 is evaluated as 1% of gross profit (10) General reserve is to be increased by $10,000.
Required:
Prepare
a) a statement of profit or loss and other comprehensive income for the year ended 31 December 2021,
b) a statement of changes in equity for the year ended 31 December 2021,
c) a statement of financial position at that date,
d) notes, in accordance with IAS1 *Presentation of Financial Statements".
Your answer should be as complete and informative as possible within the limits of the information given to you, An accounting policy note is also required,
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille