Reference no: EM133020974

Question - Fergie Ltd incurs the following expenses and income for the year ended 30 June 2019. Interest revenue $200,000, sales revenue $1,600,000, cost of goods sold $550,000, administrative salaries $170,000, depreciation of office equipment $70,000, major loss owing to insolvency of customer $110,000, damage caused by 'space junk' re-entering atmosphere $65,000, interest expense $25,000, income tax expense $150,000. The income tax expense of $150,000 is calculated after considering a tax deduction of $21,450, which related to the damage caused by the space junk. Tax rate is 33 per cent. During the year there has also been an increase in the revaluation surplus of $80,000 as a result of a revaluation of land of $80,000. The balance of the revaluation surplus on 1 July 2018 was $nil. A new accounting standard has also been introduced, which has a transitional provision allowing initial write-offs to be recognised as a decrease against retained earnings. The decrease against retained earnings amounted to $50,000. Retained earnings at the beginning of the financial year were $1,950,000, and dividends of $200,000 were paid during the financial year. Issued share capital on 1 July 2018 and 30 June 2019 was $510,000. Prepare a Statement of Comprehensive Income and A Statement of Changes in Equity. Explain what other comprehensive income is.