The following trial balance is available for Wiggins SA as at 31 December 20×3. ?000 ?000 Issued…
The following trial balance is available for Wiggins SA as at 31 December 20×3. ₵000 ₵000 Issued share capital 17,250 Retained earnings 57,500 10% long-term loan (20×9) 63,250 Bank overdraft 6,325 Trade payables 30,650 Accumulated depreciation – vehicles 9,200 Accumulated depreciation – buildings 2,300 Accumulated depreciation – equipment 3,450 Freehold land 57,500 Freehold buildings 57,500 Equipment 14,950 Motor vehicles 20,700 Inventory at 1 Jan 20×3 43,125 Trade receivables 28,750 Cash in hand 4,600 Purchases 258,750 Bank interest 1,150 Dividends 1,725 Interest on loan 6,325 Insurance 5,290 Salaries and wages 20,355 Motor expenses 9,200 Taxation that was under provided 750 Light, power, miscellaneous 4,255 Sales 345,000 534,925 534,925 The following information relating to accruals and prepayments has not yet been taken into account in the amounts shown in the trial balance: i. Inventory valued at cost at 31 December 20×3 was ₵25,875,000. ii. Depreciation is to be provided as follows: a. 2% on freehold buildings using the straight-line method. b. 10% on equipment using the reducing balance method. c. 25% on motor vehicles using the reducing balance method. iii. ₵2,300,000 was prepaid for light, power, and miscellaneous expenses and ₵5,175,000 has accrued for wages. iv. Freehold land was revalued on 31 December 20X3 at ₵77,500,000, resulting in a gain of ₵20,000,000. v. Assume income tax at 20% of pre-tax profit. vi. 1,500 shares had been issued on 1 January 20X3 at ₵1.50 each. Required: A. Prepare for the year ended 31 December 20×3 the statement of comprehensive income, the statement of changes in equity, and the statement of financial position. (32 marks) B. IAS 1 Presentation of Financial Statements requires ‘other comprehensive income’ items to be included in the statement of comprehensive income, and it also requires a statement of changes in equity. Explain the need for publishing this information and identify the items you would include in them. May 16 2022 03:13 PM
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