ABC ltd. has the following trial balance for the year ending December 31, 2021.

  Dr. Cr.
     
Land 1,000  

Building - cost 2,000  

Acc.dep. - building   500

Plant - cost 5,000  

Acc.dep. - plant   1,000

Brand 3,000  
Acc.amortization - brand 900
CWIP ----  

Inventory 500  

Cash & bank balances 15,000  

10% Bank loan - for qualifying asset   6,500

12% Bank loan - general   6,000

14% Bank loan - general   7,000

Revenues   7,600

Cost of sales 2,000  

Operating expenses 500  

Finance charges 500  

29,500 29,500

Adjustments:

1) ABC decided to construct a plant during the year 2021and yet to record the following
costs related to the qualifying asset.
a. The specific loan was obtained on July1st, 2021, however, the commencement of
plant started on Feb 1st, 2021. All the general loans were obtained on Jan 1st, 2021.
b. ABC ltd. made the following payments to the contractor:
 i. $3,000 on Feb 1st, 2021
ii. $2,000 on Mar 31st, 2021
iii. $6,500 on Oct 31st, 2021
All payments from April 2021 onwards were made from specific loan and general
funds were utilized for all prior payments.
c. ABC ltd. invested all the excess funds from general and specific loans to earn a
return of 5%. Further, only $5,000 from general borrowings were utilized for the
entire year of 2021.
d. The asset was completed on Dec 31st, 2021.
2) On Dec 31st, 2021, ABC obtained a bank loan of $500 from a govt. owned bank. The
market rate of interest was 10% but a discounted rate of 6% was allowed by govt. The
entire amount of loan was spent during December on company’s operating expenses.
3) The brand cost was $3,000 and had a useful life of 10 years. An impairment review on
July 1st, 2021, identified that brand had a value-in-use of $1,200 and a remaining useful
life of 3 years. However, on the same date, the company received an offer to purchase the
brand for $1,500. These entries were not recorded in the year 2021.

Required:

1) Statement of comprehensive income for the year ended December 31, 2021.
2) Statement of financial position as at December 31st, 2021.