SHOW YOUR WORKING FOR EACH OF THE NUMEERED QUESTIONS Woodsid

SHOW YOUR WORKING FOR EACH OF THE NUMEERED QUESTIONS Woodside Global Trading Limited, a company listed on the Roman Stock Exchange, is a trading and investment entity. The compamy trades exclusively in golf equipment, and invests in property and other firms, Woodside Global Trading Limited have just engaged you as their extemal accountant to assist in the preparation of the entity\'s 2025 financial statements. The financial period of the company is from January 1 to December 31 The company has provided you the following list of accounts, and the trial balance totals per account as at December 31, 2023: Name of Account Trial Balance Accounts Payable Accounts Receivables Advance from Substantial Shareholder Cash and Cash Equivalents Cost of Goods Sold Current Tax Liabilities Employee Benefit Obligations Gain from Sale of Plant and Equipement Intangible Assets $8,000,000 $4.500,000 S10,750,000 S65,015,000 $1,600,000 $1,500,000 $13,002,000 $1,200,000 S19,650,000 S1,150,000 $48,000,000 S6.500,000 S19,580,000 Loans Duc in Less than 12 Months Long-Term Intercorporate Investment Long-Term Land Investment Long-Term Loans Notes Payable Notes Payable (Due in Less than 12 Months) Operating Expenses Other Payables Other Receivables (Due in more than 12 Months) Paid-Up Capital Plant and Equipment Prepaid Expenses 5500,000 $16,014,000 $450,000 $250,000 $32,000,000 $28,500,000 $520,000 S10,150,000 $14,500,000 $15,190,000 S100,890,000 $6,300,000 Retained Earnings Short-Term Investments Additional Information: SHOW YOUR WORKING FOR EACH OF THE NUMBERED QUESTIONS I -The trial balance amount for Plant and Egwipwent is a gross amount. The total accumulated depreciation of applied to Plant and Eqwipment as at December 31, 2025 is $6,000,000. It is the policy of Woodside Global Trading Limited to show the valuc of Plant and Equipment as a net amount in the financial statements 2-For the period ended December 31, 2025, Woodside Global Trading Limited recorded a profit of S7,500,000. This amount has yet to be included in the Retained Earnings balance as per the trial balance. 3-The substantial shareholder has indicated that to setule the advance amount, the substantial shareholder as indicated a very strong preference and probability for payment by issuance of new 4 -All prepaid expenses as at December 31, 2025 are expected to be consumed by the end of December 31. 2026. -The land held for investment is separate from the property the plant and equipment (owned by Woodside Global Trading Limited) resides on 6-In the forthcoming 12 months Woodside Global Trading Limited is predicting the entity will purchase plant and equipment to the value of $14,000,000. 7-The value of thc Inventory as shown in the trial balance is the net realizable value. The value of inventory at cost is $15,650,000. 8-The effective tax rate that Woodside Global Trading Limited is subject to is 21% Required: Using the information supplied, prepare a balance sheet statement of financial position for Woodside Global Trading Limited for the end of 2025 that conforms with IFRS LAS I requirements

Solution

Woodside Global Trading Limited

Balance Sheet

(For the year ended December 31, 2025)

ASSETS

Current Assets;

Accounts Receivables

$4500000

Short-Term Investments

$6500000

Cash and Cash Equivalents

$950000

Inventory

$15650000

Prepaid Expenses

$520000

Total current assets

$28120000

Non-current Assets;

Property

$10150000

Plant and Equipment……$28500000

Less: Accumulated Dep…$6000000

$22500000

Other Receivables (Due in more than 12 Months)

$250000

Intangible Assets

$1200000

Long-Term Intercorporate Investment

$48000000

Long-Term Land Investment

$6500000

Total non-current assets

$88600000

Total Assets

$116720000

LIABILITIES

Current liabilities;

Accounts Payable

$8000000

Current Tax Liabilities

$1600000

Employee Benefit Obligations

$1500000

Loans Due in Less than 12 Months

$1150000

Notes Payable

$4000000

Notes Payable (Due in Less than 12 Months)

$500000

Other Payables

$450000

Total current liabilities

$17200000

Non-current liabilities;

Long-Term Loans

$19580000

Total non-current liabilities

$19580000

Shareholders’ Funds;

Paid-Up Capital………..…$32000000

Add: Advance from Substantial Shareholder………………$10750000

$42750000

Reserves

$14500000

Retained Earnings…….$15190000

Add: Profit………………$7500000

$22690000

Total Shareholders’ Funds;

$79940000

Total liabilities & Shareholders’ Funds

$116720000

Working Note;

1. Accumulated depreciation will be deducted from gross value of Plant & Equipment.

2. Net profit of the year is added to retained earnings.

3. Other information related to income statement will not be shown in balance sheet because only net profit is reported in balance sheet.

4. All prepaid expenses are prepaid on December, 31 that is why these are shown under current assets.

5. Inventory is reported on the lower of cost or net realizable value that is $15,650,000

Woodside Global Trading Limited
Balance Sheet
(For the year ended December 31, 2025)
ASSETS
Current Assets;
Accounts Receivables	$4500000
Short-Term Investments	$6500000
Cash and Cash Equivalents	$950000
Inventory	$15650000
Prepaid Expenses	$520000
Total current assets		$28120000
Non-current Assets;
Property	$10150000
Plant and Equipment……$28500000
Less: Accumulated Dep…$6000000	$22500000
Other Receivables (Due in more than 12 Months)	$250000
Intangible Assets	$1200000
Long-Term Intercorporate Investment	$48000000
Long-Term Land Investment	$6500000
Total non-current assets		$88600000
Total Assets		$116720000
LIABILITIES
Current liabilities;
Accounts Payable	$8000000
Current Tax Liabilities	$1600000
Employee Benefit Obligations	$1500000
Loans Due in Less than 12 Months	$1150000
Notes Payable	$4000000
Notes Payable (Due in Less than 12 Months)	$500000
Other Payables	$450000
Total current liabilities		$17200000
Non-current liabilities;
Long-Term Loans	$19580000
Total non-current liabilities		$19580000
Shareholders’ Funds;
Paid-Up Capital………..…$32000000
Add: Advance from Substantial Shareholder………………$10750000	$42750000
Reserves	$14500000
Retained Earnings…….$15190000
Add: Profit………………$7500000	$22690000
Total Shareholders’ Funds;		$79940000
Total liabilities & Shareholders’ Funds		$116720000