IAS I deal with “the format and substance of published accounts”. On December 31, 2013 the following Trial Balance was extracted from the books of South-Western Producers Ltd.Trial Balance as at December 31, 2013 Details/Accounts $ $ Premises at cost 12,500,000 Fixtures and fittings at cost 4,000,000 Depreciation, January 1, 2013 buildings 4,000,000 Depreciation, January 1, 2013 fixtures and fittings 1,300,000 Inventory, January 1, 2013 625,000 Trade receivables 840,000 Cash at bank 60,000 $1 ordinary shares 625,000 Share premium 850,000 Retained earnings, January 1, 2013 3,400,000 Bank loan 5,000,000 Trade payables 900,000 Other payables 510,000 Revenue 8,935,000 Purchases 4,900,000 Administrative expenses 1,200,000 Distribution costs 1,255,000 Tax for the year 140,000 ------------ Total 25,520,000 25,520,000 Additional Information:1. Depreciation is charged to administrative expenses on the following basis:· Premises, 5% straight line.· Fixtures and fittings, 10% reducing balance.2. Inventory on December 31, was valued at $700,000.3. Included within distribution costs is $300,000 legal costs incurred on the sudden reorganization of the distribution function.4. 125,000 ordinary shares were issued during the year at $4.00 each.Required:In accordance with the requirements of IAS 1, prepare the following statements for the year ended December 31, 2013 (show all relevant workings):(a) The statement of profit or loss and other comprehensive income. (b) The statement of financial position. (c) The statement of changes in equity.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 1PB: The trial balance of Jillson Company as of December 31, the end of its current fiscal year, is as...

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IAS I deal with “the format and substance of published accounts”. On December 31, 2013 the following Trial Balance was extracted from the books of South-Western Producers Ltd.
Trial Balance as at December 31, 2013

Details/Accounts	$	$
Premises at cost	12,500,000
Fixtures and fittings at cost	4,000,000
Depreciation, January 1, 2013 buildings		4,000,000
Depreciation, January 1, 2013 fixtures and fittings		1,300,000
Inventory, January 1, 2013	625,000
Trade receivables	840,000
Cash at bank	60,000
$1 ordinary shares		625,000
Share premium		850,000
Retained earnings, January 1, 2013		3,400,000
Bank loan		5,000,000
Trade payables		900,000
Other payables		510,000
Revenue		8,935,000
Purchases	4,900,000
Administrative expenses	1,200,000
Distribution costs	1,255,000
Tax for the year	140,000	------------
Total	25,520,000	25,520,000

Additional Information:
1.      Depreciation is charged to administrative expenses on the following basis:
·         Premises, 5% straight line.
·         Fixtures and fittings, 10% reducing balance.
2.      Inventory on December 31, was valued at $700,000.
3.      Included within distribution costs is $300,000 legal costs incurred on the sudden reorganization of the distribution function.
4.      125,000 ordinary shares were issued during the year at $4.00 each.
Required:
In accordance with the requirements of IAS 1, prepare the following statements for the year ended December 31, 2013 (show all relevant workings):
(a)   The statement of profit or loss and other comprehensive income.
(b)   The statement of financial position.
(c)   The statement of changes in equity.

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