Reference no: EM132904388
The following relates to Roberto Limited for the year ended 30 June 2017:
Sale of goods $2,050,000
Interest income 12,500
Consultancy fees received 60,000
Cost of sales 325,000
Finance costs 44,500
Distribution expenses 60,000
Marketing expenses 115,000
Warehouse services expenses 250,000
Administration expenses 55,000
Other expenses 110,000
Income tax expense 440,000
Additional information:
The balance of the asset revaluation Reserve at 1 July 2016 was $40,000. On 30 June 2017 the carrying value of land was restated to a directors' valuation resulting in a credit to the asset revaluation Reserve of $150,000. Assume a company tax rate of 30%.
- Retained earnings at 1 July 2016 $150,000
- As at 1 July 2016 there were 400,000 fully paid ordinary shares on issue $400,00
- Dividends paid and proposed during the FY:
- Interim dividend paid, fully franked $30,000
- Final dividend proposed, fully franked $22,500
- Transfer from retained earnings to General Reserve $35,000
- General Reserve at 1 July 2016 $nil
- During the FY, a further $100,000 ordinary shares were issued and fully paid on application $100,000
- Pending legal action against the company for infringement of a patent for $500,000. Directors' don't believe that this action will be successful.
- One of the directors provided warehouse services for $50,000 in the current financial year. The service was provided at arm's length. This transaction has already been included the financial values provided in the table (above).
Required:
Problem 1: Prepare the following:
1.1. a Statement of Comprehensive Income,
1.2. a Statement of Changes in Equity and
1.3. Notes to the Financial Statements at 30 June 2017.