Financial Reporting Assignment -
Presentation of financial statements -
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The adjusted trial balance of Timber Ltd as at 30 June 2017 is as follows:
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Timber Ltd
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Debit
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Credit
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$
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$
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Account names
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5% debentures - due 30/11/2017(secured over inventories)
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60,000
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Accounts payable
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447,000
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Accounts receivable
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850,000
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Accumulated amortisation - patents & trademarks
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45,000
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Accumulated depreciation -
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Accumulated impairment loss - goodwill
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210,000
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Administrative staff salaries expense
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590,000
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Advertising expense
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70,000
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Allowance for doubtful debts
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71,500
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Asset Revaluation Reserve - Held to maturity investment (revaluation increment on 30/06/2017 after tax deduction)
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21,000
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Asset Revaluation Reserve - Land (revaluation increment on 30 June 2017 - after tax deduction)
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168,000
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Bank loan (unsecured -long-term repayable amount)
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210,000
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Bank loan (unsecured -short-term repayable due)
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90,000
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Buildings
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90,000
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Buildings
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1,100,000
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Carrying amount of plant and machinery sold
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24,000
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Cash at bank
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800,000
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Cost of sales
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2,924,000
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Current tax liabilities
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141,000
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Debentures held in Rome Ltd (mature on 30/4/2018)
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714,000
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Deferred tax asset
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190,000
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Deferred tax liability
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103,000
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Deposits at call
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100,000
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Dividends receivable
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8,000
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Dividends revenue
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68,000
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Final dividend declared - ord
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145,360
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Final dividend declared - pref
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45,300
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Final dividend payable
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190,660
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Fixtures & fittings
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97,000
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Fixtures & fittings - at cost
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243,520
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Freight inwards
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90,000
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Freight outwards
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115,000
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General reserve
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780,000
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Goodwill
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832,000
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Held to maturity investment (at fair value)
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145,000
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Income tax expense
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401,000
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Interest expense
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74,000
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Interest payable
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19,000
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Interest revenue
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30,000
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Interim dividend paid - ord
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109,020
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Inventories
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1,850,000
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Land (at fair value)
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1,476,000
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Loan to Jets Ltd (due on 30/6/2025)
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420,000
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Mortgage loan (secured over land and buildings - due 30/9/2022)
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504,000
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Ordinary shares, fully paid
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3,634,000
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Other administrative expense
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360,000
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Other expenses
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137,000
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Other selling expense
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220,000
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Patents and trademarks
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145,000
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Plant & machinery
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226,000
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Plant & machinery - at cost
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884,000
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Preference shares, fully paid
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226,500
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Prepayments
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50,000
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Proceeds on sale of plant and machinery
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50,000
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Provision for annual leave
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62,000
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Provision for long service leave - long term liable
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134,000
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Provision for long service leave -short term liable
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85,000
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Retained earnings as at 1/7/2016
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850,000
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Sales returns
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32,000
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Sales revenue
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6,968,340
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Sales staff salaries and commission expense
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750,000
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Sundry revenue
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46,200
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Total Asset revaluation reserve as at 1/7/2016
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364,000
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Transfer to general reserve
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60,000
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Underwriting commission and other share issue costs
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37,000
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Total
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15,991,200
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15,991,200
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Additional information:
i) During the financial year, the following share issues were made:
- 2,000,000 ordinary shares issued at $0.8 each, fully paid
- 100,000 5% preference shares issued at $1.00 each, fully paid
The share issue costs incurred for the ordinary share and preference share issues amounted to $8,000 and $7,000 respectively.
ii) On 30 June 2016, both land and held-to-maturity investment were revaluated.
iii) Accounting policies adopted are consistent with those of the previous year.
Required -
a) Prepare a statement of profit or loss and other comprehensive income for Timber Ltd for the year ended 30 June 2017 (classify expenses by functions). Cross reference all workings.
b) Prepare a statement of financial position for Timber Ltd as at 30 June 2017 to comply with AASB 101. Use the current and non-current presentation format. Cross reference all workings.
c) Prepare a statement of changes in equity for Timber Ltd for the year ended 30 June 2017 according in accordance with the requirements of AASB 101. Show all workings.