Bartlett Huang

02/15/2023 · Middle School

The following information was extracted from the accounting records of Arnoldus Limited at 29 February 2024: Pre-adjustment trial balance as at 29 February 2024 Debit Credit Land and buildings at cost 5 500 000 Vehicles at cost 1 800 000 Vehicles: Accumulated depreciation 800 000 Equipment at cost 1 500 000 Equipment: Accumulated depreciation 600 000 11% Fixed Deposit: Capitoc Bank 90 000 Inventory 75 400 Trade Receivables 64 500 Allowance for credit losses 5 000 Bank 34 000 Ordinary Shares 700 000 Retained Earnings 6 306 320 Trade Payables 150 000 Sales 1 050 000 Cost of Sales 358 770 Salaries and wages 360 000 Credit losses 7 500 Rates 22 000 Insurance 38 900 Interest on fixed deposit 6 750 Rent income 165 000 Depreciation ? 9 817 070 9 817 070 Additional information: 1. Physical stock take and subsequent valuation on a first-in-first-out basis revealed the value of inventory on hand as at 29 February 2024 was R65 400 2. A section of the property is rented out to Eliza Wellness Centre since 1 March 2023 at a monthly rental of R15 000. Rent for the year was received and recorded correctly. 1 3. The management of Arnoldus Limited has determined that the allowance for credit losses should be maintained at 10% of carrying value Trade Debtors 4. The balance in the insurance account at 29 February 2024 includes an annual insurance premium of R6000 that was paid for the period 1 June 2023 to 31 May 2024. 5. Interest of R3 150 is still receivable on the fixed deposit as at 29 February 2024. 6. Depreciation is still to be accounted for as follows: a. Vehicles – straight line basis over 5 years b. Equipment – 20% on the diminishing balance method Required: Prepare the Statement of Comprehensive Income of Arnoldus Limited for the year ended 29 February 2024 to comply with the International Financial Reporting Standards. Comparative figures are not required. Show all workings. please simplify and use a table to explain your answer.