Assignment Facts 1

Zeus Ltd was established on 1 July 2018 with share capital totalling $132,000.

One year later the statement of comprehensive income and statement of financial position were as follows:

Statement of comprehensive income for the year ended 30 June 2019

$ $

Sales revenue 650,000

Interest revenue 500

Dividend revenue 300

Exempt income 400

Capital profit on sale of land 700

651,900

Cost of sales 175,000

Depreciation on machinery 5,900

Depreciation on vehicles 100

Goodwill impairment loss 300

Salaries and wages 120,000

Annual leave 1,800

Rent of premises 72,000

Insurance 1,200

Entertainment 400

Fines and penalties 100

Fringe benefits tax 200

Warranty expense 600

Doubtful debts expense 200

Other expenses 194,100 571,900

Profit before income tax 80,000

Statement of Financial Position as at 30 June 2019 Assets Cash 24,000 Accounts receivable 37,500 Less: Allowance for doubtful debts (200) 37,300 Interest receivable 100 Inventory 20,000 Prepaid insurance 300 Machinery (cost) 79,000 Less: Accumulated depreciation (5,900) 73,100 Vehicles 11,000 Less: Accumulated depreciation (100) 10,900 Goodwill 45,000 Less: Accumulated impairment loss (300) 44,700 Investments 25,000 Total assets 235,400 Liabilities Accounts payable 15,000 Rent payable 6,000 Provision for annual leave 1,800 Provision for services warranties 600 Total liabilities 23,400 Net Assets 212,000 Shareholders' equity Share capital 132,000 Retained earnings 80,000 212,000