The following details are taken from the accounting records of Halfmoon Ltd 30 june 2019 Additional information:
Question:
The following details are taken from the accounting records of Halfmoon Ltd 30 june 2019
Additional information:
(a) During the year ending 30 June 2019, 100,000 shares were issued at an issue price of $3.50 each, payable in full on application.
(b) During the year, the company paid dividends of $160,500 to the shareholders.
(c) During the year ending 30 June 2019, the directors revalued land. The revaluation was based on an independent valuation received from a registered valuer. This results in an increase in the revaluation surplus of land (net of tax) of $130,500.
(d) The company tax rate is 30%.
Prepare a statement of comprehensive income (by function) and a statement of changes in equity for Halfmoon Ltd for the year ended 30 June 2019,
Debit $ | Credit $ | |
Retained earnings | 310,000 | |
Revaluation surplus | 255,000 | |
Sales revenue | 2,495,000 | |
Sales returns and allowances | 10,000 | |
Cost of sales | 1,360,000 | |
Inventory | 11,000 | |
Administrative expenses | 475,000 | |
Bank overdraft | 1,250 | |
Other expenses | 30,000 | |
Tax payable | 2,250 | |
Interest revenue | 7,000 | |
Interest expenses | 10,500 | |
Bank overdraft | 5,000 | |
Account payable | 2,500 | |
Other debtors | 1,000 | |
Share capital | 600,000 | |
Allowance for doubtful debts | 1,000 | |
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones