The equity of Fiorente Ltd at 30 June 2019 was as follows.

Additional information During the year ended 30 June 2020, the following transactions occurred.

In determining the profit before tax of $1 264 000 the following items were taken into account.

Required

(a) Prepare general journal entries for all dated transactions in the additional information.

(b) Prepare a statement of profit or loss and other comprehensive income for the reporting period ended 30 June 2020 in accordance with current accounting standards.

(c) Prepare a statement of changes in equity for Fiorente Ltd for the reporting period ended 30 June 2020.

(d) Discuss the nature and purpose of the general reserve.

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Share capital 500000 5% cumulative preference shares issued at $1 each 1000 000 ordinary shares issued at $2 each Total share capital General reserve Retained earnings $ 500000 2 000 000 2 500 000 350 000 (200 000) $ 3 650 000