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Comprehensive Income Statement for Cootamundra Ltd

Question

The following details are taken from the accounting records of Cootamundra Ltd. at 30 June 2015.

Trial Balance as at 30 June, 2015

 

Debit

AUD $

Credit

AUD $

Sales Revenue

 

 

 

 

 

2,000,000

Rent Revenue

 

 

 

 

 

   149,500

Salaries

 

 

 

 

 

240,000

 

Light, power & fuel

 

 

 

 

75,000

 

Audit Fees

 

 

 

 

 

30,000

 

Interest Expense

 

 

 

 

24,000

 

Damage due to fire

 

 

 

 

 

99,000

 

Purchases

 

 

 

 

 

1,080,000

 

Interim dividend

 

 

 

 

24,000

 

Cash at bank

 

 

 

 

228,000

 

Inventories

 

 

 

 

 

345,000

 

Accounts Receivable

 

 

 

 

256,500

 

Provision for Doubtful Debts

 

 

 

 

30,000

Term deposit - due 30th September, 2015

 

 

498,000

 

Marketable Securities (long term)

 

 

120,000

 

Insurance paid in advance

 

 

 

 

60,000

 

Plant & Machinery

 

 

 

 

 

270,000

 

Furniture & fittings

 

 

 

 

300,000

 

Buildings

 

 

 

 

 

435,000

 

Accounts Payable

 

 

 

 

 

180,000

Accumulated Depreciation – Plant & Machinery

 

 

 

135,000

Accumulated Depreciation - Furniture & fittings

 

 

 

90,000

Accumulated Depreciation – Buildings

 

 

 

87,000

Bank Mortgage secured over buildings, due 1st May, 2017

 

450,000

Share Capital

 

 

 

 

 

750,000

General Reserve

 

 

 

 

 

120,000

Retained Earnings

 

 

 

 

 

93,000

 

 

 

 

 

 

4,084,500

4,084,500

Additional Information

  • Salaries not paid at 30th June amounted to $30,000.
  • Unpaid power account for June totalled $16,000.
  • Prepaid insurance attributable to current year is 24,000.
  • Cootamundra Ltd. uses the periodic inventory system. The stock-take of 30th June shows closing inventory of $330, 000 (valued at lower of cost and market value).
  • Interest on bank mortgage is 10% per annum and is payable twice yearly on 31st December and 30thThe amount due at 30 June has not been recognised.
  • Depreciation rates on the straight line basis are as follows:
    1. Plant & Machinery                    10%
    2. Furniture & Fittings                   5%
    3. Buildings                                    5%.
  • The current market value of marketable securities is $126,000.
  • Tax expense was calculated to be $80,000.
  • A final dividend of 5% of paid-up-capital was declared and approved in 30th June 2015.
  • On 21st June 2015, Cootamundra Ltd. was notified of an impending legal suit for $25,000 against the company for breach of contract. The case was settled 15th July 2015.
  • The tax rate is 30%.                                                   

Required:

  • Prepare the necessary adjusting journal entries required by items (a) to (l)(narrations are not required).                                                                                                                      
  • Prepare a Statement of Comprehensive Income, a Statement of Financial Position and a Statement of Changes in Equity for Cootamundra Ltd for the year ended 30th June 2015 in accordance with the requirements of AASB 101.

3) Prepare at least fifteen (15) notes to the financial statements according to comply with relevant accounting standards.

Summary

This question belongs to accounting and discusses about preparing a comprehensive income and statement of equity for Cootamundra Ltd.

Word Count: Answer is in Excel format

 

 

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