Homework Help is Here – Start Your Trial Now!
Business
Accounting
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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

7

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 $3000 had been omitted when the 2022 financial statements were prepared. The Tax Office has indicated that electricity expense will be permitted as a deduction for tax purposes. The tax rate is 30 per cent. REQUIRED Prepare the statement of profit or loss and other comprehensive income and statement of changes in equity so as to comply with all applicable accounting standards. LO 16.3, 16.4, 16.10
Transcribed Image Text:An extract from the financial statements of Wedding Cake Island Ltd for the year ended 30 June is provided below. Wedding Cake Island Ltd Abridged statement of profit or loss and other comprehensive income for the year ended 30 June 2023 2023 2022 ($) ($) Profit before tax 19 000 23 600 Income tax expense (5 700) (7 080) Profit for the year 13 300 16 520 Other comprehensive income 13 300 16 520 Wedding Cake Island Ltd Statement of changes in equity for the year ended Share Retained capital ($) 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
Expert Solution
steps

Step by step

Solved in 2 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS