The following information relates to Greenmind Ltd. The equity of Greenmind Ltd on 30 June 2022 was: Share capital (issued at $5, fully paid) $1,500,000 Asset revaluation surplus $1,100,000 Retained earnings $1,300,000

Revenue for the year ended 30 June 2023 was $2,008,800. In addition, the following transactions and events occurred during the year: Cost of sales 842,400 Selling expenses 216,000 Administrative expenses 129,600 Other expenses 79,200 Interest expense 43,200 Total: 698,400

Other events which occurred during the year: 1. Gain on revaluation of land 36,000 2. A contingent liability (Payables in dispute) was now reliably measurable 86,400 3. The company entered a finance lease on the 1st of July 2022 with the following terms: Lease Term (years): 3 Economic Life of Machine (years): 5 Annual rental payment, in arrears ($): 150,000 Residual value at the end of the lease term ($): 90,000 Residual value guaranteed by lessee ($): 60,000 Interest rate implicit in lease: 6.0% Calculate the interest expense and depreciation associated with the above lease and include these amounts in the preparation of the Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2023. 4. On the 1st of September 2022, a 1 for 3 rights offer was made to existing shareholders. The issue price was $5 per share payable in full on allotment. The issue closed full subscribed, and the directors proceeded to allotment. The issue was underwritten for a commission of $15,000 and paid on the 12th of November 2022. 5. On the 1st of July 2022 the company issued a disclosure document inviting applications for 3000 6.5% $1000 debentures, payable in full on application. The debentures are redeemable at nominal value on 30 June 2025. Applications were received for all debentures which were duly allotted. Costs associated with the debenture issue of $17,500 were paid 7th September 2022. 6. Bad debts recovered during the year amounted to $126,000. 7. Dividends received from a subsidiary amounted to $405,000. 8. Assume the company's taxation rate is 25c in the dollar.

Requirements:

1. Please create the Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2023, in accordance with the requirements of AASB 101. Based on the information received, determine whether to disclose the expenses by function or nature. 2. Prepare the supporting lease payments schedule. Include all relevant journals (as applicable) to support changes to the balances included in the Statement of Profit or Loss and Other Comprehensive Income for each of the "Other events" noted above. Ignore comparatives as the information is not provided.

Answer rating: 100% (QA)

1 Statement of Profit or Loss and Other Comprehensive Income Greenmind Ltd Statement of Profit or Loss and Other Comprehensive Income For the year end... View the full answer