prepare income statement
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Extract from the General Ledger Profit and loss Account Particulars Debit Credit Balance 2016 2,693,000 120,000 38,000 2693000 CR Jun-30 Trading Profit on sale of fa Interest on deposits Dividends from Batters Ltd Lease e Wages and salaries Superannuation Expense Council rates 2,813,000 CR 2.851,000 CR 2,856,000 CR 2.849,000 CR 1,949,000 CR 1.929,000 CR .909,000 CR ,809,000 CR 1,589,000 CR 1,539,000 CR 1.506,000 CR 1,496,000 CR 1476,000 CR 1.466,000 CR 1,386,000 CR 1.372.000 CR 1,354,000 CR 944,00O CR 890,000 CR 850,000 CR 840,000 CR 820,000 CR 810,000 CR 350,000 CR 280,000 CR 208,000 CR on 900,000 20,000 20.000 100,000 220,000 50,000 33,000 10,000 20,000 10,000 80,000 Directors' fees Auditors fees Long service leave (sales staff) Postage and stationery Re pair E Doubtful Debts Maintenance of Buil Debenture interest Interest on mortgage loan 18.000 410.000 54.000 40,000 10,000 20,000 10,000 460,000 70,000 72,000 208,000 reciation ent Motor vehicles Depreciation Repairs/Ser Interest on overdraft Insurance Amortization of Customer List Retail Buildings Depreciation Impairment of Share in NYC Income Tax Expense Retained Ear of motor vehicles Retained Earnings Credit Particulars Debit Balance 2015 Balance 800,000 CR 2016 Jun-30 1,008,000 CR Profit & Loss Account Interim Dividend General Reserve Stock Replacement Reserve Final Dividend 208,000 300,000 708,000 CR 728,000 CR 628,000 CR 428,000 CR 20000 100,000 200,000 b. Current Liabilities Trade and Other Payables C. Non-Current Liabilities Interest Bearing Liabilities Competency Limited Trial balance as at 30 June 2016 Debit Credit Account Accumulated amortization Customer List 10000 460000 410000 54000 70000 10000 900000 524600 450000 reciation Retail buildings reciation E ment Accumulated depreciation Motor vehicles Accumulated Impairment- Shares in NYC Ltd Allowance for doubtful debts Asset Revaluation Surplus Bank Creditors Customer List Current tax liabili Debtors Deferred Tax Asset 40000 103200 350000 31200 350000 its At Call with OXY Cash Management Trust Dividend Equalisation Reserve Office Equipment Final Dividend Payable Fully secured debentures-7% maturing 30 June 2020 General reserve Goodwil Land and retail buildings-independent revaluation as at June 30, 2016 Mo Motor vehicles Provision for long service leave Retained Eami Share capital Ordinary $1 shares (full Shares in NYC Ltd Stock Stock replacement reserve 300000 2700000 200000 100000 100000 90000 4600000 e loan-secured against land & retail buildin 1030000 60000 428000 4234400 120000 1263000 500000 S9,944,200 S9,944,200 Additional information and directors' recommendations 1, income tax is applied at 30%. 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 $200,000 was declared on June 30, 2016 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 6. Due to increased utilisation of equipment, depreciation charged is larger than normal by $70,000 7. Sales earned - $8 500 000 8. During the year a building no longer required by the company was sold at a profit of $120,000. This building was purchased in 1966 thus the profit is not taxable 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. Depreciation for taxation purposes for the year ended June 30 2016 was $380,000-Equipment $50,000- Motor Vehicles $400,000 - Retail Buildings 12. $10,000 will be paid to employees for long service leave during the year ended 30 June 2017 13. Long service leave paid during the current year amounted to $33,000 14.70% of wages and salaries and superannuation are earned by sales staff and 30% by administrators 15. Motor vehicles are used solely by the sales staff 16, 50% of the insurance relates to the building, 20% to the equipment and the remainder to the vehicles and Impairments increased by $100,000 during the year 17. Business policy indicated that Other Expenses include Director's and Auditor's Fees, Amortizations 18. The General Reserve was decreased by $20,000 and the Stock Replacement Reserve was 19. It is intended to repay $100,000 off the mortgage in the next financial year Extract from the General Ledger Profit and loss Account Particulars Debit Credit Balance 2016 2,693,000 120,000 38,000 2693000 CR Jun-30 Trading Profit on sale of fa Interest on deposits Dividends from Batters Ltd Lease e Wages and salaries Superannuation Expense Council rates 2,813,000 CR 2.851,000 CR 2,856,000 CR 2.849,000 CR 1,949,000 CR 1.929,000 CR .909,000 CR ,809,000 CR 1,589,000 CR 1,539,000 CR 1.506,000 CR 1,496,000 CR 1476,000 CR 1.466,000 CR 1,386,000 CR 1.372.000 CR 1,354,000 CR 944,00O CR 890,000 CR 850,000 CR 840,000 CR 820,000 CR 810,000 CR 350,000 CR 280,000 CR 208,000 CR on 900,000 20,000 20.000 100,000 220,000 50,000 33,000 10,000 20,000 10,000 80,000 Directors' fees Auditors fees Long service leave (sales staff) Postage and stationery Re pair E Doubtful Debts Maintenance of Buil Debenture interest Interest on mortgage loan 18.000 410.000 54.000 40,000 10,000 20,000 10,000 460,000 70,000 72,000 208,000 reciation ent Motor vehicles Depreciation Repairs/Ser Interest on overdraft Insurance Amortization of Customer List Retail Buildings Depreciation Impairment of Share in NYC Income Tax Expense Retained Ear of motor vehicles Retained Earnings Credit Particulars Debit Balance 2015 Balance 800,000 CR 2016 Jun-30 1,008,000 CR Profit & Loss Account Interim Dividend General Reserve Stock Replacement Reserve Final Dividend 208,000 300,000 708,000 CR 728,000 CR 628,000 CR 428,000 CR 20000 100,000 200,000 b. Current Liabilities Trade and Other Payables C. Non-Current Liabilities Interest Bearing Liabilities Competency Limited Trial balance as at 30 June 2016 Debit Credit Account Accumulated amortization Customer List 10000 460000 410000 54000 70000 10000 900000 524600 450000 reciation Retail buildings reciation E ment Accumulated depreciation Motor vehicles Accumulated Impairment- Shares in NYC Ltd Allowance for doubtful debts Asset Revaluation Surplus Bank Creditors Customer List Current tax liabili Debtors Deferred Tax Asset 40000 103200 350000 31200 350000 its At Call with OXY Cash Management Trust Dividend Equalisation Reserve Office Equipment Final Dividend Payable Fully secured debentures-7% maturing 30 June 2020 General reserve Goodwil Land and retail buildings-independent revaluation as at June 30, 2016 Mo Motor vehicles Provision for long service leave Retained Eami Share capital Ordinary $1 shares (full Shares in NYC Ltd Stock Stock replacement reserve 300000 2700000 200000 100000 100000 90000 4600000 e loan-secured against land & retail buildin 1030000 60000 428000 4234400 120000 1263000 500000 S9,944,200 S9,944,200 Additional information and directors' recommendations 1, income tax is applied at 30%. 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 $200,000 was declared on June 30, 2016 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 6. Due to increased utilisation of equipment, depreciation charged is larger than normal by $70,000 7. Sales earned - $8 500 000 8. During the year a building no longer required by the company was sold at a profit of $120,000. This building was purchased in 1966 thus the profit is not taxable 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. Depreciation for taxation purposes for the year ended June 30 2016 was $380,000-Equipment $50,000- Motor Vehicles $400,000 - Retail Buildings 12. $10,000 will be paid to employees for long service leave during the year ended 30 June 2017 13. Long service leave paid during the current year amounted to $33,000 14.70% of wages and salaries and superannuation are earned by sales staff and 30% by administrators 15. Motor vehicles are used solely by the sales staff 16, 50% of the insurance relates to the building, 20% to the equipment and the remainder to the vehicles and Impairments increased by $100,000 during the year 17. Business policy indicated that Other Expenses include Director's and Auditor's Fees, Amortizations 18. The General Reserve was decreased by $20,000 and the Stock Replacement Reserve was 19. It is intended to repay $100,000 off the mortgage in the next financial year
