High Sky Ltd incurred the following expenses and revenues for the reporting period ended 30 June 2021IncomeInterest revenue400,000Sales revenue3,200,000ExpensesCost of goods sold110,000Administration salaries240,000Depreciation of office equipment140,000Major loss owing to insolvency of customer220,000Damage caused by 'space-junk' re-enteringatmosphereInterest expense130,00050,000Income tax expense300,000Opening equity4,900,000During the year there has been an increase in the revaluation surplus of $80,000 as a result of a revaluation ofland.Retained earnings at the beginning of the financial year was $1,950,000 and dividends of S$200,000 were paidduring the reporting period.Required:Prepare a statement of Profit or Loss and other comprehensive income (in a single statement with expensesshown by function) and a statement of changes in equity in compliance with IAS 1.

Other Comprehensive income describes revenues, expenses, profit or loss which are yet to be realized…

High Sky Ltd incurred the following expenses and revenues for the reporting period ended 30 June 2021 Income 400,000 3,200,000 Interest revenue Sales revenue Expenses Cost of goods sold 110,000 240,000 Administration salaries Depreciation of office equipment Major loss owing to insolvency of customer Damage caused by 'space-junk ' re-entering atmosphere Interest expense 140,000 220,000 130,000 50,000 300,000 4,900,000 Income tax expense Opening equity During the year there has been an increase in the revaluation surplus of $80,000 as a result of a revaluation of land. Retained earnings at the beginning of the financial year was S1,950,000 and dividends of $200,000 were paid during the reporting period. Required: Prepare a statement of Profit or Loss and other comprehensive income (in a single statement with expenses shown by function) and a statement of changes in equity in compliance with IAS 1.

High Sky Ltd incurred the following expenses and revenues for the reporting period ended 30 June 2021 Income 400,000 3,200,000 Interest revenue Sales revenue Expenses Cost of goods sold 110,000 240,000 Administration salaries Depreciation of office equipment Major loss owing to insolvency of customer Damage caused by 'space-junk ' re-entering atmosphere Interest expense 140,000 220,000 130,000 50,000 300,000 4,900,000 Income tax expense Opening equity During the year there has been an increase in the revaluation surplus of $80,000 as a result of a revaluation of land. Retained earnings at the beginning of the financial year was S1,950,000 and dividends of $200,000 were paid during the reporting period. Required: Prepare a statement of Profit or Loss and other comprehensive income (in a single statement with expenses shown by function) and a statement of changes in equity in compliance with IAS 1.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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