In: Accounting
Sction 1 – Presentation of financial statements
The adjusted trial balance of Timber Ltd as at 30 June 2017 is as follows: |
||
Timber Ltd |
Debit |
Credit |
$ |
$ |
|
Account names |
||
5% debentures – due 30/11/2017(secured over inventories) |
60,000 |
|
Accounts payable |
447,000 |
|
Accounts receivable |
850,000 |
|
Accumulated amortisation – patents & trademarks |
45,000 |
|
Accumulated depreciation - |
||
Accumulated impairment loss – goodwill |
210,000 |
|
Administrative staff salaries expense |
590,000 |
|
Advertising expense |
70,000 |
|
Allowance for doubtful debts |
71,500 |
|
Asset Revaluation Reserve - Held to maturity investment (revaluation increment on 30/06/2017 after tax deduction) |
21,000 |
|
Asset Revaluation Reserve - Land (revaluation increment on 30 June 2017 - after tax deduction) |
168,000 |
|
Bank loan (unsecured –long-term repayable amount) |
210,000 |
|
Bank loan (unsecured –short-term repayable due) |
90,000 |
|
Buildings |
90,000 |
|
Buildings |
1,100,000 |
|
Carrying amount of plant and machinery sold |
24,000 |
|
Cash at bank |
800,000 |
|
Cost of sales |
2,924,000 |
|
Current tax liabilities |
141,000 |
|
Debentures held in Rome Ltd (mature on 30/4/2018) |
714,000 |
|
Deferred tax asset |
190,000 |
|
Deferred tax liability |
103,000 |
|
Deposits at call |
100,000 |
|
Dividends receivable |
8,000 |
|
Dividends revenue |
68,000 |
|
Final dividend declared – ord |
145,360 |
|
Final dividend declared - pref |
45,300 |
|
Final dividend payable |
190,660 |
|
Fixtures & fittings |
97,000 |
|
Fixtures & fittings - at cost |
243,520 |
|
Freight inwards |
90,000 |
|
Freight outwards |
115,000 |
|
General reserve |
780,000 |
|
Goodwill |
832,000 |
|
Held to maturity investment (at fair value) |
145,000 |
|
Income tax expense |
401,000 |
|
Interest expense |
74,000 |
|
Interest payable |
19,000 |
|
Interest revenue |
30,000 |
|
Interim dividend paid - ord |
109,020 |
|
Inventories |
1,850,000 |
|
Land (at fair value) |
1,476,000 |
|
Loan to Jets Ltd (due on 30/6/2025) |
420,000 |
|
Mortgage loan (secured over land and buildings – due 30/9/2022) |
504,000 |
|
Ordinary shares, fully paid |
3,634,000 |
|
Other administrative expense |
360,000 |
|
Other expenses |
137,000 |
|
Other selling expense |
220,000 |
|
Patents and trademarks |
145,000 |
|
Plant & machinery |
226,000 |
|
Plant & machinery - at cost |
884,000 |
|
Preference shares, fully paid |
226,500 |
|
Prepayments |
50,000 |
|
Proceeds on sale of plant and machinery |
50,000 |
|
Provision for annual leave |
62,000 |
|
Provision for long service leave - long term liable |
134,000 |
|
Provision for long service leave -short term liable |
85,000 |
|
Retained earnings as at 1/7/2016 |
850,000 |
|
Sales returns |
32,000 |
|
Sales revenue |
6,968,340 |
|
Sales staff salaries and commission expense |
750,000 |
|
Sundry revenue |
46,200 |
|
Total Asset revaluation reserve as at 1/7/2016 |
364,000 |
|
Transfer to general reserve |
60,000 |
|
Underwriting commission and other share issue costs |
37,000 |
|
Total |
15,991,200 |
15,991,200 |
Prepare a statement of profit or loss and other comprehensive income for Timber Ltd for the year ended 30 June 2017 (classify expenses by functions). Cross reference all workings
Timber Ltd | ||
Statement of Profit or Loss and Other Comprehensive Income | ||
For the year ended 30/06/2017 | ||
Reference # | ||
Revenue | ||
Cost of sales | ||
Gross profit | ||
Other revenue | ||
Other income (loss) | ||
Selling expenses | ||
Administrative expenses | ||
Other expenses | ||
Finance costs | ||
Profit before income tax | ||
Income tax expense | ||
Profit for the period | ||
Other comprehensive income: | ||
Items that will not be reclassified to profit or loss | ||
Gain arising during the year on revaluation of land | ||
Gain arising during the year on investments in equity instruments | ||
Income tax relating to items not reclassified | ||
Other comprehensive income during the year, net of tax | ||
Total comprehensive income for the year |
Revenue | 69,36,340 |
Cost of sales | 29,24,000 |
Gross profit | 40,12,340 |
Other revenue | 76,200 |
Other income (loss) | - |
Selling expenses | 10,40,000 |
Administrative expenses | 9,50,000 |
Other expenses | 3,42,000 |
Finance costs | 1,11,000 |
Profit before income tax | 16,45,540 |
Income tax expense | 4,01,000 |
Profit for the period | 12,44,540 |
Other comprehensive income: | - |
Items that will not be reclassified to profit or loss | |
Gain arising during the year on revaluation of land | 1,68,000 |
Gain arising during the year on investments in equity instruments | 21,000 |
Income tax relating to items not reclassified | 39,690 |
Other comprehensive income during the year, net of tax | - |
Total comprehensive income for the year | 1,49,310 |