Use the information given below to prepare the Statement of Comprehensive Income of Micron Limited for the
Question:
Use the information given below to prepare the Statement of Comprehensive Income of Micron Limited for the year ended 28 February 2022.
INFORMATION
The following information was provided by Micron Limited for the financial year ended 28 February 2022:
Additional information and adjustments
1. According to physical stocktaking the following were on hand on 28 February 2022:
1.1 Trading inventory R420 000
1.2 Stationery R10 000
2. The advertising total includes a payment of R12 000 for advertisements that were due to be published for the period 01 January 2022 to 30 June 2022 (R2 000 per month).
3. Part of the building has been let to a tenant since 01 March 2021. Rent amounts to R20 000 per month. Make the necessary adjustment.
4. Write off the account of debtor, P. Peter, R3 000.
5. The provision for bad debts must be decreased to R25 000.
6. Directors’ fees have been paid up to 31 January 2022. A third director was employed from 01 February 2022. The three directors earn the same remuneration. Provide for the fees still due.
7. The loan from Hip Bank was obtained on 01 February 2022. Provide for the outstanding interest on loan.
8. A notice from the municipality indicated that the rates assessment for the year ended 28 February 2022 has been finalised and it amounted to R96 000 for the financial year.
9. Provide for depreciation as follows:
9.1 On vehicles at 20% per year using the diminishing balance method.
9.1 On equipment at 15% per year on cost.
10. The company tax for the year ended 28 February 2022 is calculated at 28% of the profit before tax.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill