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High Sky Ltd incurred the following expenses and revenues for the reporting period ended 30 June 2021 Income 400,000 3,200,000 Interest revenue Sales revenue Expenses Cost of goods sold 110,000 240,000 Administration salaries Depreciation of office equipment Major loss owing to insolvency of customer Damage caused by 'space-junk ' re-entering atmosphere Interest expense 140,000 220,000 130,000 50,000 300,000 4,900,000 Income tax expense Opening equity During the year there has been an increase in the revaluation surplus of $80,000 as a result of a revaluation of land. Retained earnings at the beginning of the financial year was S1,950,000 and dividends of $200,000 were paid during the reporting period. Required: Prepare a statement of Profit or Loss and other comprehensive income (in a single statement with expenses shown by function) and a statement of changes in equity in compliance with IAS 1.

High Sky Ltd incurred the following expenses and revenues for the reporting period ended 30 June 2021 Income 400,000 3,200,000 Interest revenue Sales revenue Expenses Cost of goods sold 110,000 240,000 Administration salaries Depreciation of office equipment Major loss owing to insolvency of customer Damage caused by 'space-junk ' re-entering atmosphere Interest expense 140,000 220,000 130,000 50,000 300,000 4,900,000 Income tax expense Opening equity During the year there has been an increase in the revaluation surplus of $80,000 as a result of a revaluation of land. Retained earnings at the beginning of the financial year was S1,950,000 and dividends of $200,000 were paid during the reporting period. Required: Prepare a statement of Profit or Loss and other comprehensive income (in a single statement with expenses shown by function) and a statement of changes in equity in compliance with IAS 1.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 25E
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High Sky Ltd incurred the following expenses and revenues for the reporting period ended 30 June 2021 Income Interest revenue 400,000 Sales revenue 3,200,000 Expenses Cost of goods sold 110,000 Administration salaries 240,000 Depreciation of office equipment 140,000 Major loss owing to insolvency of customer 220,000 Damage caused by 'space-junk' re-entering atmosphere Interest expense 130,000 50,000 Income tax expense 300,000 Opening equity 4,900,000 During the year there has been an increase in the revaluation surplus of $80,000 as a result of a revaluation of land. Retained earnings at the beginning of the financial year was $1,950,000 and dividends of S$200,000 were paid during the reporting period. Required: Prepare a statement of Profit or Loss and other comprehensive income (in a single statement with expenses shown by function) and a statement of changes in equity in compliance with IAS 1.
Transcribed Image Text:High Sky Ltd incurred the following expenses and revenues for the reporting period ended 30 June 2021 Income Interest revenue 400,000 Sales revenue 3,200,000 Expenses Cost of goods sold 110,000 Administration salaries 240,000 Depreciation of office equipment 140,000 Major loss owing to insolvency of customer 220,000 Damage caused by 'space-junk' re-entering atmosphere Interest expense 130,000 50,000 Income tax expense 300,000 Opening equity 4,900,000 During the year there has been an increase in the revaluation surplus of $80,000 as a result of a revaluation of land. Retained earnings at the beginning of the financial year was $1,950,000 and dividends of S$200,000 were paid during the reporting period. Required: Prepare a statement of Profit or Loss and other comprehensive income (in a single statement with expenses shown by function) and a statement of changes in equity in compliance with IAS 1.
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