An extract from the financial statements of Wedding Cake Island Ltd for the year ended 30 June is provided below. Wedding Cake Island Ltd Abridged statement of profit or loss and other comprehensive income for the year ended 30 June 2023 2023 2022 ($) ($) Profit before tax 19 000 23 600 Income tax expense (5 700) (7 080) Profit for the year 13 300 16 520 Other comprehensive income 13 300 16 520 Wedding Cake Island Ltd Statement of changes in equity for the year ended Share Retained сapital ($) Total earnings ($) 30 June 2023 ($) Balance at 30 June 2021 3 000 3 040 6 040 Profit for the year ending 30 June 2022 16 520 16 520 Distributions (4 000) (4 000) Balance at 30 June 2022 3 000 15 560 18 560 Profit for the year ending 30 June 2023 13 300 13 300 Dividends (4 000) (4 000) Balance at 30 June 2023 3 000 24 860 27 860 The following additional information is available: During the preparation of the 2023 financial statements, it became apparent that electricity expenses of $3000 had been omitted when the 2022 financial statements were prepared. The Tax Office has indicated that electricity expense will be permitted as a deduction for tax purposes. The tax rate is 30 per cent. REQUIRED Prepare the statement of profit or loss and other comprehensive income and statement of changes in equity so as to comply with all applicable accounting standards. LO 16.3, 16.4, 16.10
An extract from the financial statements of Wedding Cake Island Ltd for the year ended 30 June is provided below. Wedding Cake Island Ltd Abridged statement of profit or loss and other comprehensive income for the year ended 30 June 2023 2023 2022 ($) ($) Profit before tax 19 000 23 600 Income tax expense (5 700) (7 080) Profit for the year 13 300 16 520 Other comprehensive income 13 300 16 520 Wedding Cake Island Ltd Statement of changes in equity for the year ended Share Retained сapital ($) Total earnings ($) 30 June 2023 ($) Balance at 30 June 2021 3 000 3 040 6 040 Profit for the year ending 30 June 2022 16 520 16 520 Distributions (4 000) (4 000) Balance at 30 June 2022 3 000 15 560 18 560 Profit for the year ending 30 June 2023 13 300 13 300 Dividends (4 000) (4 000) Balance at 30 June 2023 3 000 24 860 27 860 The following additional information is available: During the preparation of the 2023 financial statements, it became apparent that electricity expenses of $3000 had been omitted when the 2022 financial statements were prepared. The Tax Office has indicated that electricity expense will be permitted as a deduction for tax purposes. The tax rate is 30 per cent. REQUIRED Prepare the statement of profit or loss and other comprehensive income and statement of changes in equity so as to comply with all applicable accounting standards. LO 16.3, 16.4, 16.10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:An extract from the financial statements of Wedding Cake Island Ltd for the year ended 30 June is provided
below.
Wedding Cake Island Ltd
Abridged statement of profit or loss and other comprehensive
income for the year ended 30 June 2023
2023
2022
($)
($)
Profit before tax
19 000
23 600
Income tax expense
(5 700)
(7 080)
Profit for the year
13 300
16 520
Other comprehensive income
13 300
16 520
Wedding Cake Island Ltd
Statement of changes in equity for the year ended
Share
Retained
capital
($)
Total
earnings
($)
30 June 2023
($)
Balance at 30 June 2021
3 000
3 040
6 040
Profit for the year ending 30 June 2022
16 520
16 520
Distributions
(4 000)
(4 000)
Balance at 30 June 2022
3 000
15 560
18 560
Profit for the year ending 30 June 2023
13 300
13 300
Dividends
(4 000)
(4 000)
Balance at 30 June 2023
3 000
24 860
27 860
The following additional information is available:
During the preparation of the 2023 financial statements, it became apparent that electricity expenses of $3000 had
been omitted when the 2022 financial statements were prepared.
The Tax Office has indicated that electricity expense will be permitted as a deduction for tax purposes. The tax
rate is 30 per cent.
REQUIRED
Prepare the statement of profit or loss and other comprehensive income and statement of changes
in equity so as to comply with all applicable accounting standards. LO 16.3, 16.4, 16.10
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