The trial balance of Beta shows the following balances at 31 December 2021: Dr Cr $000 $000 Issued share capital (500,000 shares) 500 Share premium 20 Finance costs 70 Retained earnings 1 January 2021 346 Inventory (raw materials) at 1 January 2021 60 Sales 1170 Purchases 890 Purchases returns 26 Sales returns 28 Carriage outwards 28 Work-in-progress at 1 January 2021 80 Intangible assets 170 Administrative wages 30 Warehouse plant and equipment – cost 92 Accumulated depreciation – 1 January 2021 30 Delivery vehicle hire 20 Distribution expenses 30 Administrative expenses 10 Directors’ salaries 30 Sales allowances 6 Investment income 30 Bank overdraft 20 Trade receivables 380 Cash at bank 110 Land 120 2148 2148 Additional information: Inventories at 31 December 2021 were valued at $12,000. Work-in-progress at 31 December 2021 was valued at $3,000 Depreciation charges (plant and equipment) for the year amounting to $7,000 and $2,000 should be included in distribution costs and administrative expenses, respectively. The income tax for the year is evaluated as $20,000 A final dividend of $0.50 per share was declared on 31 March 2022. There were no disposals of any non-current assets during the year. Land was revalued at 31 December 2021 to $100,000. No entries have yet been made to record this. Life insurance for general director is to be accrued $3,000. Receivables totalling $14,000 are to be written off General reserve is to be created as $2,000 Allowance for receivables should be created as 2% of net receivables Required: Prepare a) a statement of profit or loss and other comprehensive income for the year ended 31 December 2021,

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 13P: Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and...

See similar textbooks

Related questions

Concept explainers

Question

The trial balance of Beta shows the following balances at 31 December 2021:

	Dr	Cr
	$000	$000
Issued share capital (500,000 shares)		500
Share premium		20
Finance costs	70
Retained earnings 1 January 2021		346
Inventory (raw materials) at 1 January 2021	60
Sales		1170
Purchases	890
Purchases returns		26
Sales returns	28
Carriage outwards	28
Work-in-progress at 1 January 2021	80
Intangible assets	170
Administrative wages	30
Warehouse plant and equipment – cost	92
Accumulated depreciation – 1 January 2021		30
Delivery vehicle hire	20
Distribution expenses	30
Administrative expenses	10
Directors’ salaries	30
Sales allowances		6
Investment income		30
Bank overdraft		20
Trade receivables	380
Cash at bank	110
Land	120
	2148	2148

Additional information:

Inventories at 31 December 2021 were valued at $12,000.
Work-in-progress at 31 December 2021 was valued at $3,000
Depreciation charges (plant and equipment) for the year amounting to $7,000 and $2,000 should be included in distribution costs and administrative expenses, respectively.
The income tax for the year is evaluated as $20,000
A final dividend of $0.50 per share was declared on 31 March 2022.
There were no disposals of any non-current assets during the year. Land was revalued at 31 December 2021 to $100,000. No entries have yet been made to record this.
Life insurance for general director is to be accrued $3,000.
Receivables totalling $14,000 are to be written off
General reserve is to be created as $2,000
Allowance for receivables should be created as 2% of net receivables

Required:

Prepare

a) a statement of profit or loss and other comprehensive income for the year ended 31 December 2021,

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.