The following operational income and expenses relate to Gammit Ltd for the year ended 30 June 2022:

Table 13 - Operational income and expenses

Operational income and expenses:	$
Sales revenue	2,035,000
Cost of sales	575,000
Interest Received	50,000
Commission	20,000
Distribution expenses	395,000
Marketing expenses	75,000
Occupancy expenses	110,000
Administration expenses	225,0000
Finance cost	92,000
Other Expenses	38,000

Additional information:

• Administration expenses included:
  • Audit of accounts: $17,000
  • Taxation advice paid to the auditors: $24,000
  • Depreciation of plant & equipment: $15,000
  • Goodwill impairment: $5,000
  • Employee benefits: $90,000
• Finance cost comprise of interest on borrowings of $92,000
• Share capital as at 1 July 2021 was 3,500,000 ordinary shares of $1.00 each, fully paid
• The company issued 200,000 ordinary shares on 1 April 2022 at $1.50 each, fully paid
• Retained earnings balance 1 July 2021 (credit balance): $388,000
• General reserve balance 1 July 2021: $50,000
• Amount transferred from general reserve 30 June 2022: $25,000
• Asset revaluation reserve balance 1 July 2021: $110,000
• On 30 June 2022, the directors adopted a new valuation of land and buildings of $2,950,000. The previous valuation of land and buildings was $1,900,000.
• A fully franked interim dividend of $0.04 per ordinary share was paid on 15 February 2022.
• The directors declared a proposed final dividend of $0.05 per ordinary share, fully franked, on 30 June 2022.
• Assume a tax rate of 30%.
• Franking credits available at the end of the year were $98,000
  1. Revenue and expenses for the period

Questions:

Question 1: Make a Statement of profit or loss and other comprehensive income with expenses classified by function for the year ended 30 June 2022

Question 2: Write Notes to the Statement of profit or loss and other comprehensive income for the following:

1. Other comprehensive income.

Question 3: Make the Statement of Changes in Equity for the year ended 30 June 2022

Question 4: Provide details required, as well the additional disclosures required to support the Statement of changes in equity for the following:

1. Dividends
2. Dividend franking account.

Answer rating: 100% (QA)

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