Reference no: EM132210537
Question - Please assist with the Following question.
Lime light Ltd recorded the following operational income and expenses for the year ending 30 June 2015:
Revenue (Sales) $382,000
Cost of Sales 142,000
Commission received 20,000
Interest received 8,000
Distribution expenses 35,000
Marketing expenses 20,000
Occupancy expenses 41,000
Administration expenses 53,000
Other expenses 22,000
Finance cost expenses 10,000
Additional information:
Share capital at 1 July 2014 was 800,000 ordinary shares of $ 1.00 each, fully paid.
The company issued 200,000 ordinary shares on 1 May 2015 at $1.15 each, fully paid.
Administration expenses included:
Audit fees: $ 6,000
Fees for taxation services paid to the auditors: $ 4,000
Depreciation of property, plant & equipment: $12,000
Retained earnings balance 1 July 2014 (credit) $122,000
General reserve balance 1 July 2014 $ 10,000
Transferred during the year to general reserve from retained earnings $15,000
Asset Revaluation Reserve balance 1 July 2014 $25,000
The previous valuation of Land and Buildings was $425,000
A revaluation of Land and Buildings on 30 June 2015 by the director $445,000
A fully franked interim dividend of $0.02 (2 cents) per ordinary share was paid on 15 March 2015 for 800,000 ordinary shares
The directors declared a proposed final dividend of $0,035 (3.5 cents) per ordinary share, fully franked, on 30 June 2015
Income tax expense for the year is $26,000
Franking credits available at the end of the year were $18,225
(a) Calculate a Statement of Comprehensive Income with both expenses (classified by function) and revenues disclosed on the face of the statement.
(b) Find a Statement of Changes in Equity disclosing all movements on the statement.
(c) Explain the following notes to support the income statement and statement of changes in equity:
(i) Profit for the period.
(ii) Dividends.
(iii) Dividend franking credit.