how to make Comprehensive Income Statement, Statement of Change in Equity and balance sheet for the year ending June 30, 2016 in compliance with AASB 101.with working of

Incomes, Finance Costs and the Other Expenses that are included in the Profit& Loss Account

Material Item

Non-Current Assets - Other Financial Assets

Current Liabilities - Trade and Other Payables

Non-Current Liabilities - Interest Bearing Liabilities

Dandi Limited

Trial balance as at 30 June 2016

Account

Debit

Credit

$

$

Accumulated amortization - Customer List

$25,000.00

Accumulated depreciation - Retail buildings

$460,000.00

Accumulated depreciation - Equipment

$410,000.00

Accumulated depreciation - Motor vehicles

$54,000.00

Accumulated Impairment - Shares in NYC Ltd

$70,000.00

Allowance for doubtful debts

$10,000.00

Asset Revaluation Surplus

$900,000.00

Bank

$524,600.00

Creditors

$450,000.00

Customer List

$70,000.00

Current tax liability

$103,200.00

Debtors

$350,000.00

Deferred Tax Asset

$31,200.00

Deposits At Call with QXY Cash Management Trust

$400,000.00

Dividend Equalisation Reserve

$300,000.00

Office Equipment

$2,700,000.00

Final Dividend Payable

$250,000.00

Fully secured debentures - 7% maturing 30 June 2020

$100,000.00

General reserve

$100,000.00

Goodwill

$170,000.00

Land and retail buildings - independent revaluation as at June 30, 2016

$4,600,000.00

Mortgage loan - secured against land & retail buildings

$1,045,000.00

Motor vehicles

$320,000.00

Provision for long service leave

$60,000.00

Retained Earnings

$378,000.00

Share capital - Ordinary $1 shares (fully paid)

$4,234,400.00

Shares in NYC Ltd

$120,000.00

Stock

$1,213,000.00

Stock replacement reserve

$500,000.00

$9,974,200.00

$9,974,200.00

Additional information and directors' recommendations

1. Income tax is applied at 30%.

30%

Tax Rate

2. Goodwill is deemed to be supported by future economic benefit at June 30, 2016

3. Interim dividend of $300,000 was paid on 28 February and a final dividend of $250,000 was declared on June 30, 2016

$300,000.00

Interim Dividend

$250,000.00

Final Dividend

4. Shares in NYC Ltd were revalued at current market valuation of $50,000 at 30 June 2016.This is a material item and there is no tax benefit.

5. Land and buildings were revalued upwards by $900,000 to $4,600,000 in June 2016

$900,000.00

Revaluation Surplus

6. Due to increased utilisation of equipment, depreciation charged is larger than normal by $70,000.

7. Sales earned

$10,500,000.00

Sales

8. During the year a building no longer required by the company was sold at a profit of $150,000. This building was purchased in 1966 thus the profit is not taxable

$150,000.00

Profit on Sale of Building

9. Building repair expenses resulted from storm damage that hit suburban Melbourne and caused some structural damage to a shop.

10. Equipment, Motor Vehicles and Retail Buildings were purchased on July 1, 2015

11. $10,000 will be paid to employees for long service leave during the year ended 30 June 2017

$ 10,000.00

Provision for Long Service Leave

12. Long service leave paid during the current year amounted to $33,000

$ 33,000.00

Long Service Leave

13. 65% of wages and salaries are earned by sales staff and 35% by administrator, 60% of superannuation relates to sales and remainder by administration

14.Motor vehicles are used solely by the sales staff

15.40% of the insurance relates to the building, 40% to the equipment and the remainder to the vehicles

16. Business policy indicated that Other Expenses include Director's and Auditor's Fees, Amortizations and Impairments

17. The General Reserve was decreased by $20,000 and the Stock Replacement Reserve was increased by $100,000 during the year.

18. It is intended to repay $100,000 off the mortgage in the next financial year.

$100,000.00

Mortgage Loan Repayment Amount

Extract from the General Ledger

Profit and loss Account

Date

Particulars

Debit

Credit

Balance

DR/CR

2016 Jun-30

Trading

$2,723,000.00

$2,723,000.00

CR

Profit on sale of factory

$150,000.00

$2,873,000.00

CR

Interest on deposits

$38,000.00

$2,911,000.00

CR

Dividends from Batters Ltd

$5,000.00

$2,916,000.00

CR

Lease expense on office equip

$7,000.00

$2,909,000.00

CR

Wages and salaries

$900,000.00

$2,009,000.00

CR

Superannuation Expense

$20,000.00

$1,989,000.00

CR

Council rates

$50,000.00

$1,939,000.00

CR

Advertising

$100,000.00

$1,839,000.00

CR

Directors' fees

$220,000.00

$1,619,000.00

CR

Auditor's fees

$50,000.00

$1,569,000.00

CR

Long service leave (sales staff)

$33,000.00

$1,536,000.00

CR

Postage and stationery

$10,000.00

$1,526,000.00

CR

Building Repair Expenses

$20,000.00

$1,506,000.00

CR

Doubtful Debts

$10,000.00

$1,496,000.00

CR

Maintenance of Buildings

$80,000.00

$1,416,000.00

CR

Debenture interest

$14,000.00

$1,402,000.00

CR

Interest on mortgage loan

$18,000.00

$1,384,000.00

CR

Office Equipment - Depreciation

$410,000.00

$974,000.00

CR

Motor vehicles - Depreciation

$54,000.00

$920,000.00

CR

Repairs/Servicing of motor vehicles

$40,000.00

$880,000.00

CR

Interest on overdraft

$10,000.00

$870,000.00

CR

Insurance

$35,000.00

$835,000.00

CR

Amortization of Customer List

$25,000.00

$810,000.00

CR

Retail Buildings - Depreciation

$460,000.00

$350,000.00

CR

Impairment of Share in NYC

$70,000.00

$280,000.00

CR

Income Tax Expense

$72,000.00

$208,000.00

CR

Retained Earnings

$208,000.00

$-

Retained Earnings

Date

Particulars

Debit

Credit

Balance

DR/CR

2015 Jul-01

Balance

$800,000.00

CR

2016 Jun-30

Profit & Loss Account

$208,000.00

$1,008,000.00

CR

Interim Dividend

$300,000.00

$708,000.00

CR

General Reserve

$20,000.00

$728,000.00

CR

Stock Replacement Reserve

$100,000.00

$628,000.00

CR

Final Dividend

$250,000.00

$378,000.00

CR

Insurance Expense

Building

40%

Equipment

40%

Vehicles

20%

Wages and Salaries

Sales

65%

Administration

35%

Superannuation

Sales

60%

Administration

40%