ACCOUNTING ASSIGNMENT

Accounting Assignment

Financial Statements of Pine Ltd

Task 7)

(A) Draft the statement of comprehensive income for Pine Ltd for the year ended 31 March 20X1.

Comprehensive Income

Earning or comprehensive income statement is a term which is used for the financial reporting by the companies for the entire company financial health. In order words, it is the statement where the entire expenses and income of the company are recognized during the period. The statement comprises of finance costs, revenue, tax expenses, discontinued operations, profit share and profit/loss.

Comprehensive Income, the State may submit a single state in which display total comprehensive income (income and expenses are results and unrealized income and expenses that are in equity), or in two states showing a the components of profit and a second statement beginning with the result and displaying components of other comprehensive income to arrive at total comprehensive income.Earning or comprehensive income statement is a term which is used for the financial reporting by the companies for the entire company financial health. In order words, it is the statement where the entire expenses and income of the company are recognized during the period. The statement comprises of finance costs, revenue, tax expenses, discontinued operations, profit share and profit/loss.The following is the comprehensive income statement of Pine Ltd

Pine Ltd

Statement of Income and Comprehensive Income

For the Year Ended 31 March 20X1

 

£000

 

 

Sales Revenue

80,908

Less: COGS

 

Inventories at 1 April 20X0

5,064

 

Add: Purchases

53,444

 

Goods Available for Sales

58,508

 

Less: Inventories at 31 March 20X1

(7,004)

 

COGS

51,504

Gross profit

29,404

Operating Expenses

 

Distribution costs

9,977

 

Administrative expenses

6,755

 

Dep: Building

4089

 

Dep: Plan and Equip

3528.5

 

Bad Debts

24

 

Total Expenses

(24,374)

Net operating income

5,031

Less other expenses

 

Interest expenses

640

 

Income from Revaluation

9222

 

Income From Continuing Operations Before Income Tax Expense

13,613

Tax

(1254)

Net Income

 

 

 

12,359

Earnings per share [1000,000 shares]

 

 

 

 

Income from continuing operations

12359000/1000000

12.359

Comprehensive Income Per Share

 

 

 

12.359

(B) Draft the statement of financial position for Pine Ltd as at 31 March 20X1

R & D expenses include costs incurred by an entity prior to the production or use of technologies that are incurred on research or otherwise acquired knowledge of the outcome of which can be used in the production of new or improved products and new technology. There are recognized as intangible assets only if they are originating from research (or research phase of internal projects). Expenditure on research (or research phase in an internal project) should be recognized as expenses in the period in which incurred.

Pine Ltd Balance Sheet

31 March 20X1

Assets

 

Liabilities and Equity

 

 

 

£000

 

 

 

Current Assets

 

 

 

Current liabilities

 

 

Cash at Bank

 

 

1,568

Accounts payable

 

5,502

Accounts receivable (net)

 

 

9,886

Bank Loan

 

16,000

Inventories

 

 

5,064

tax

 

1254

Mis Ex

 

 

2717

Interest payable

 

640

 

 

 

 

Accruals

 

517

 

 

 

 

share capital

 

50000

 

 

 

 

 

 

 

Fixed Assets

Owner's Equity

Property, Plant, and Equipment

 

 

 

 

 

 

Land & buildings

 

81,778

 

Reserve

 

12000

Depreciation

 

18,089

Retained Earning

 

7,945

Gain on Revaluation

 

9222

72,911

Dividend

1600

Plant and equipment

 

24,000

 

Profit

 

12359

 

 

11529

12,471

 

 

30,704

Total Assets

 

 

104,617

Total Liabilities

 

104,617

Task 8

Calculate the total value of inventory to be recorded in a financial Statement

The net realizable value of an asset is the amount that can be obtained from their sale on the market, in the normal course of business, less estimated costs necessary to carry out, as well as in the case of raw materials and work in progress, the estimated costs necessary to complete its production, construction or manufacturing (Needles B., Powers M., Crosson ...