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A Read aloud Draw Question 1 You have just joined PQE Enterprise Pte Ltd as an accountant and have been tasked with preparing the financial statements of the business for the year ending 31 December 20X2. PQE Enterprise Pte Ltd is a local company in the business of distributing bottled drinks, adopts the Singapore Financial Reporting Standards (FRSs) and have December 31 year- ends. You are provided with the unadjusted trial balance as follow: Unadjusted trial balance 31 December 20X2 Credit S Debit $ 13,790 10.100 10,600 6,000 20,000 1,200,000 100,000 40,000 600,000 Account Title Cash Accounts receivable Inventory Prepaid Insurance Investment in Oscar Ltd. Land Land improvement Accumulated depreciation - Land improvement PPE Accumulated depreciation - PPE Purchase Salary expense Transport expense Income tax expense Revaluation reserve Sales revenue Accounts payable Bank loan (long term) Share capital Retained earnings Salary payable 120,000 712,000 256,220 17,310 28.000 150,000 1.123.100 7,320 50.000 1,100,000 378,500 5.100 2,974,020 2,974,020 Additional information at 31 December 20X2 includes the following: (i) On 23 December, the company issued 1 million new shares at $0.30 per share. This was not yet recorded by the previous accountant who had left the company (ii) The company paid $6,000 for a two-year fire insurance policy effective 1 May 20X2. Only the initial entries were recorded The investment in Oscar Ltd was for trading purpose. On 23 December, a dividend of $900 was received from this investment. At year-end, the (1) (iv) The $50,000 bank loan taken on 1 July 20x2 carries an interest of 4% to be paid annually on June 30. On 22 December 20X2, a customer made a payment of $1,340 for an item to be delivered on 2 January 20X3 (vi) Salary expense amounting to $5,100 was debited to transport expense while cash payment was credited to salaries payable. (vi) The company made a purchase on credit of $11,000 in the month of November 20X2. This was not yet recorded. (vin) On 21 December 20X2, the company made a cash dividend payment of $60,000 to its shareholders. This was not recorded. (ix) The land improvement has zero residual value and is depreciated on a straight line basis over ten years. The property, plant and equipment (PPE) has zero residual value and is depreciated on a straight line basis over ten years. (x) The company adopted a periodic inventory system. A stock-take revealed that the year-end inventory was $9,300. Required: Using the information above, record all necessary including adjusting) journal entries (journal narratives NOT required) that are required for items (1) to (x) at the end of the financial period. Where rounding is necessary, please round your answers to the nearest dollar (28 marks) (b) Taking into account the additional information above, prepare the statement of comprehensive income, statement of financial position and statement of changes in equity of POE Enterprise Pte Ltd for the financial year ending 20x2. (31 mark)

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