Homework Help is Here – Start Your Trial Now!
Business
Accounting
Tea Tree Ltd records the following expenses and income for the year ended 30 June 2021. (S000) Income Interest revenue Sales revenue Expenses Cost of goods sold Administration salaries Depreciation of office equipment Major loss owing to insolvency of customer Damage caused by ´space junk’ re-entering atmosphere Interest expense Income tax expense 220 1,500 500 170 70 110 65 25 150 2.450 Opening equity The income tax expense of $150,000 is calculated after considering a tax deduction of $21 450, which related to the damage caused by the space junk. The tax rate is 33 per cent. During the year there has also been an increase in the revaluation surplus of $80 000 as a result of a revaluation of land of $80 000. The balance of the revaluation surplus at 1 July 2020 was Snil. A new accounting standard has also been introduced, which has a transitional provision allowing initial write-offs to be recognised as a decrease against retained earnings. The decrease against retained earnings amounts to $50 000. Retained earnings at the beginning of the financial year were $1 950 000, and dividends of $200 000 were paid during the financial year. Issued share capital at 1 July 2020 and 30 June 2021 was $500 000.

Tea Tree Ltd records the following expenses and income for the year ended 30 June 2021. (S000) Income Interest revenue Sales revenue Expenses Cost of goods sold Administration salaries Depreciation of office equipment Major loss owing to insolvency of customer Damage caused by ´space junk’ re-entering atmosphere Interest expense Income tax expense 220 1,500 500 170 70 110 65 25 150 2.450 Opening equity The income tax expense of $150,000 is calculated after considering a tax deduction of $21 450, which related to the damage caused by the space junk. The tax rate is 33 per cent. During the year there has also been an increase in the revaluation surplus of $80 000 as a result of a revaluation of land of $80 000. The balance of the revaluation surplus at 1 July 2020 was Snil. A new accounting standard has also been introduced, which has a transitional provision allowing initial write-offs to be recognised as a decrease against retained earnings. The decrease against retained earnings amounts to $50 000. Retained earnings at the beginning of the financial year were $1 950 000, and dividends of $200 000 were paid during the financial year. Issued share capital at 1 July 2020 and 30 June 2021 was $500 000.

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

REQUIRED:

a)Prepare a statement of profit and loss and other comprehensive income (in a single statementwith expenses shown by function) in conformity with IAS 1.

b)Prepare a statement of changes in equity in conformity with IAS 1.

Tea Tree Ltd records the following expenses and income for the year ended 30 June 2021. | (S000) Income Interest revenue Sales revenue Expenses Cost of goods sold Administration salaries Depreciation of office equipment Major loss owing to insolvency of customer Damage caused by 'space junk' re-entering atmosphere Interest expense Income tax expense Opening equity 220 1,500 500 170 70 110 65 25 150 2,450 The income tax expense of $150,000 is calculated after considering a tax deduction of $21 450, which related to the damage caused by the space junk. The tax rate is 33 per cent. During the year there has also been an increase in the revaluation surplus of $80 000 as a result of a revaluation of land of $80 000. The balance of the revaluation surplus at 1 July 2020 was Snil. A new accounting standard has also been introduced, which has a transitional provísion allowing initial write-offs to be recognised as a decrease against retained earnings. The decrease against retained earnings amounts to $50 000. Retained earnings at the beginning of the financial year were $1 950 000, and dividends of $200 000 were paid during the financial year. Issued share capital at 1 July 2020 and 30 June 2021 was $500 000.
Transcribed Image Text:Tea Tree Ltd records the following expenses and income for the year ended 30 June 2021. | (S000) Income Interest revenue Sales revenue Expenses Cost of goods sold Administration salaries Depreciation of office equipment Major loss owing to insolvency of customer Damage caused by 'space junk' re-entering atmosphere Interest expense Income tax expense Opening equity 220 1,500 500 170 70 110 65 25 150 2,450 The income tax expense of $150,000 is calculated after considering a tax deduction of $21 450, which related to the damage caused by the space junk. The tax rate is 33 per cent. During the year there has also been an increase in the revaluation surplus of $80 000 as a result of a revaluation of land of $80 000. The balance of the revaluation surplus at 1 July 2020 was Snil. A new accounting standard has also been introduced, which has a transitional provísion allowing initial write-offs to be recognised as a decrease against retained earnings. The decrease against retained earnings amounts to $50 000. Retained earnings at the beginning of the financial year were $1 950 000, and dividends of $200 000 were paid during the financial year. Issued share capital at 1 July 2020 and 30 June 2021 was $500 000.
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
Ratio Analysis
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
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