Reference no: EM132326372
Question:
The following details are taken from the accounting records of Alanna Ltd as at 30 June 2018:
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DR $
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CR $
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Sales Revenue
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1,425,000
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Gain on Sale of Plant and Equipment
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15,000
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Interest Revenue
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37,500
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Cost of Goods Sold
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900,000
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|
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Distribution Expenses
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45,000
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Selling Expenses
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30,000
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Administration Expenses
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45,000
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Interest Expense
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22,500
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Income Tax Expense
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112,500
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Share Capital ( as at 1 July 2017)
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600,000
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Retained Earnings ( as at 1 July 2017)
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510,000
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Asset Revaluation Reserve (as at 1 July 2017)
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50,000
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General Reserve
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80,000
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Additional information:
1. The company follows the revaluation method of accounting for its PPE. During the year the following asset was revalued: Land was revalued upwards during the year by $30,000.
2. 100,000 shares were issued during the year at a price of $1 per share
3. The company directors declared and paid a dividend of $75,000 during the year.
4. There was a transfer of $15,000 from Retained Earnings to General Reserve during the year.
5. Alanna Ltd uses the single statement format for the Statement of Profit or Loss and Other Comprehensive income and classifies expenses by function.
6. Income tax rate is 30%.
Required:
i. Prepare the Statement of Profit or Loss and Other Comprehensive Income for Alanna Ltd for the year ended 30 June 2018.
ii. Prepare the Statement of Changes in Equity for Alanna Ltd for the year ended 30 June 2018.