90.2K

Verified Solution

Link Copied!

the Jamaican Slock Exchange soon. Berlow in the entity's irial balasee for Dosember 31, 2019 : The following information below is also relevant to the entity: i. A revaluation of tand sook place ve Elecember 31, 2019, which staled that the land had a fair value of 5150 millise on that Ate. The effoct of the revaluation las not becen incladed in the accumulated temporary differences noted below. iin Brilling is dopeeciated straight line over 50 years and deprociafion charges are iphit eqaally hetueen admintitrative experies and end of sales. Building is to be revalued to 560 million as at December 31, 2019. The effoct of the nevaluation has not bect incledod in the accumulated tomporary differences noted below. in. The entity leased a machine en January t,2019 for finer years. The annual lease pryments, which are made in arrear, amount so 55 millon. The inglicit nate in the lease is curnenily sbis, while the incremental boreuwing rase is at t the. The leased ansed is ao be depreciated over four years on a straight line hatis. The rolevant deperciation cypense is to be charged equally botweren administrative expenoes asd distrilution easts. The legal fees rocoeded telate ia initiating the lease aprectrent. ix. Mant and machinery is to be depreciatod over ten years ce the straipha line hais and charged equally beta cen dotritution costs and adminiurative cxpenses v. Included in cos of sales is a brand w hich had a covt of 550 million. The brand was beught en June 30, 2019 and should be amoetised using a straight line basio over a life of ien years, time apportionod accondingly. Any amortisation should be charged to cest of sales. vi. Included in adminitrative expenves is cost of sales of 5150 millioe. vii. Dividends en the redeenalle peclerence shares are to be paid en lanuary 2, 2020. Managencent had not acrood any dividends for the entipe period. vii. The year-end promision for toad debt is to be adfruted so Ioss of gown recervables. Any adjustments io the provinion should be reconded in administrative copenses. in. Total tarable profits for 2019 anounted io 5160 milivon and the curtert tar fate is 25 .5. Accumulated taxable temporary difference as at December 31; 2019 amounted oo 5120 x. The entity sold a defective product and was sued by the customer. On December 30,2019 the entity's attorney indicated that it is probable that the entity will lose and have to pay $100 million. Settlement is likely to be within the next six months. Any amount provided for should be charged to distribution costs. xi. The entity made a one for five bonus issue on June 30,2019. xii. The entity declared dividends on ordinary shares of $0.10 on December 29,2019. Dividends are expected to be paid on January 20,2020. Required: a. Prepare the statement of profit or loss and comprehensive income for the year ended December 31, 2019. b. Prepare the statement of changes in equity for the year ended December 31,2019. c. Prepare the statement of financial position as at December 31, 2019. the Jamaican Slock Exchange soon. Berlow in the entity's irial balasee for Dosember 31, 2019 : The following information below is also relevant to the entity: i. A revaluation of tand sook place ve Elecember 31, 2019, which staled that the land had a fair value of 5150 millise on that Ate. The effoct of the revaluation las not becen incladed in the accumulated temporary differences noted below. iin Brilling is dopeeciated straight line over 50 years and deprociafion charges are iphit eqaally hetueen admintitrative experies and end of sales. Building is to be revalued to 560 million as at December 31, 2019. The effoct of the nevaluation has not bect incledod in the accumulated tomporary differences noted below. in. The entity leased a machine en January t,2019 for finer years. The annual lease pryments, which are made in arrear, amount so 55 millon. The inglicit nate in the lease is curnenily sbis, while the incremental boreuwing rase is at t the. The leased ansed is ao be depreciated over four years on a straight line hatis. The rolevant deperciation cypense is to be charged equally botweren administrative expenoes asd distrilution easts. The legal fees rocoeded telate ia initiating the lease aprectrent. ix. Mant and machinery is to be depreciatod over ten years ce the straipha line hais and charged equally beta cen dotritution costs and adminiurative cxpenses v. Included in cos of sales is a brand w hich had a covt of 550 million. The brand was beught en June 30, 2019 and should be amoetised using a straight line basio over a life of ien years, time apportionod accondingly. Any amortisation should be charged to cest of sales. vi. Included in adminitrative expenves is cost of sales of 5150 millioe. vii. Dividends en the redeenalle peclerence shares are to be paid en lanuary 2, 2020. Managencent had not acrood any dividends for the entipe period. vii. The year-end promision for toad debt is to be adfruted so Ioss of gown recervables. Any adjustments io the provinion should be reconded in administrative copenses. in. Total tarable profits for 2019 anounted io 5160 milivon and the curtert tar fate is 25 .5. Accumulated taxable temporary difference as at December 31; 2019 amounted oo 5120 x. The entity sold a defective product and was sued by the customer. On December 30,2019 the entity's attorney indicated that it is probable that the entity will lose and have to pay $100 million. Settlement is likely to be within the next six months. Any amount provided for should be charged to distribution costs. xi. The entity made a one for five bonus issue on June 30,2019. xii. The entity declared dividends on ordinary shares of $0.10 on December 29,2019. Dividends are expected to be paid on January 20,2020. Required: a. Prepare the statement of profit or loss and comprehensive income for the year ended December 31, 2019. b. Prepare the statement of changes in equity for the year ended December 31,2019. c. Prepare the statement of financial position as at December 31, 2019

Answer & Explanation Solved by verified expert

See Answer