- Tutorial 018 Country Trading Limited Deals With Farm Equipment And Machines Throughout New Zealand It Is Registered Und 1 (46.14 KiB) Viewed 65 times
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Land: No depreciation is to be provided. Buildings: 2% on cost. Plant and equipment: 10% reducing balance basis. Vehicles: Based on mileage. The total mileage expected from the vehicles is 1,800,000 kilometres. For the year ended 31" December 2021 the mileage used was 270,000 kilometres. Long term loan of $3,000,000 was outstanding as at 1" January 2021. Interest on the loan is payable at 10% per annum. An amount of $400,000 representing the principal component of the long term loan is due for repayment on 20 January 2022. Investment in shares comprises of shares available-for- sale $2,800,000 and shares held for trading $2,000,000. As at 31" December 2021, the market value of shares available-for-sale is $3,800,000 and market value of the shares held for trading is $3,200,000. These market values are considered to be the fair value of the shares. • The cost of inventory as at 31" December 2021 is $400,000 and the net realisable value is $450,000 • A professional valuation consultant re-valued land on 31" December 2021 at $10,200,000 using fair value. The revaluation reserve as at 1" January 2021 was in respect of revaluation on land in previous years. • Building was re-valued for the first time. The new market value of the building as at 31" December 2021 is $4,000,000 • An examination of the ledger account, shows that other expenses comprises of the following: 80.000 Aid Tank scrvice charge Fires dans போபாலன tienes ne Athertising and SO 0.000 NO . The values of other non-current assets are as follows: As at 31 December 2021 Value In Use Net Selling price $400,000 $350,000 $4,400,000 53.600,000 Vehicles Plant and Equipment • The Inland Revenue Department will only tax the gains on the financial assets when realised. Fines, penalties
• An examination of the ledger account, shows that other expenses comprises of the following: Accounting for 0.000 Bank service charges 20 Finds 22.00 Entertainment 50.000 Distribution 140 000 Acheting and sales promo. SHOD • The values of other non-current assets are as follows: Vehicles Pas diment As at 31 December 2001 Value In Us Net Selling price $400,000 5350.000 $4,400,000 $3,600,000 • The Inland Revenue Department will only tax the gains on the financial assets when realised. Fines, penalties and entertainment expenses are not deductible for tax purposes. Dividend income received is net of taxes. Assume a tax rate of 28% Expenses are classified in the Statement of Comprehensive Income by nature. • The contributed equity as at 31 December 2021 includes 1,000,000 ordinary shares issued in September 2021 at $3 per ordinary share. In the statement of comprehensive income the company classifies the following as other expenses: Bank service charges Fines and penalties . Entertainment expenses Required: Prepare the following for Country Trading Limited: w Balance day journal adjustments (with narrations) in general journal form for the year ended 31" December 2021. () A Statement of Comprehensive Income for the year ended 31" December 2021. (c) A balance sheet as at 31 December 2021 and the notes fipr property Plant and Equipment (a) Date Dr. Details 111221 and Debts
(a) DICE Date Details 31/12/21 Bad Debts AC receivable Doubtful Debts Provision for Doubtful Debes Depreciation - Building Accumulated Depreciation Building Depreciation Building Depreciation - PRE Accumulated Depreciation - P&E Depreciation for PE Depreciation - vehicles Accumulated Depreciation - Vehicles Depreciation for vehicles interest Accrued Interest Accrual of Interest Long Term Loan Long term Loan Due Within 1 year Long term loan doc within one year Investment Kain from investment available for sale Revaluation of investment available for sale Investment Gains from financial assets held for trading Revaluation of financial assets held for trading Revaluation Reserve Land Revaluation decrement of land Accumulated Depreciation Building Eliminating accumulated depreciation on resletion Revaluation Loss Building Revaluation loss of building Impairment or Vehicles Accumulated impairment Impairment of Vehicles limpairment of P&E Taxation Tax Payable
Tam Tax Payne (b) Country Trading Limited Statement of Comprehensive Income for the year ending 31/12/2021 Reven ther Income and Gain Purchases Khanges in catery Revlon los Det foes Doubtful dubts and hadde Audios Donato Salaries and was Accounting for Distres insurance Advertisindo Deprection Impairment loss Othere Operating profit Finance cost Pitbefore tax Taxati Pro for the year Other Comprehensive income Revaluation decrease land Kasis revaluation over Total comment income 1.PS (c) Country Trading Limited Balance Sheet as at 31/12/2021 Assets NUOVI Financial stailable for sale Total co-current set Kurrent ACH Inventos Bank over Financial assets held for trading Total Total Labtes Non-cumentalities Long Term Len Total current liabilities Kurrenties Accounts Payable Tas pale Acord interest Long term kund within 12 month Total criabili Totalities Net Assets quity ICI
ce Portas Tacation for the Other Compechensive score Revalstis decrease and non rovation of Tout comprensive mere EPS (c) Country Trading Limited Balance Sheet as at 31/12/2021 A Non- PM Financial assets available for sale Totalno Current Rec Imenores Kankavandat Financials held for Total current Total Lilities Noncurrentilities Longlom Leon Total non-current Currentes |hearts I'valls These Acredit Longarm kanda with 12 h Total current and Totallibilities Nel Acta Quy (4L Vet Tutal Supplementary note for Property, Plant und guipment Land Building Planland |Eralputer A 1 Jan 2021 koster van Accuecia Netboek var Searching 31 Dec 2011 in the Reval pament Depreciation Ne boek van AISI De 2021 Coste v Accuted depreciation dinament ist book value The land was re-valued on 1/12/2001 The surplus on valtionhas been credited to the revaluation reserve in cquity If land was stated historical col the amount be Depreciation is calculated on the host the following talex La No Depreciation Building Plant and equipment Movies