Reference no: EM132326372

Question:

The following details are taken from the accounting records of Alanna Ltd as at 30 June 2018:

	DR $	CR $
Sales Revenue		1,425,000
Gain on Sale of Plant and Equipment		15,000
Interest Revenue		37,500
Cost of Goods Sold	900,000
Distribution Expenses	45,000
Selling Expenses	30,000
Administration Expenses	45,000
Interest Expense	22,500
Income Tax Expense	112,500
Share Capital ( as at 1 July 2017)		600,000
Retained Earnings ( as at 1 July 2017)		510,000
Asset Revaluation Reserve (as at 1 July 2017)		50,000
General Reserve		80,000

Additional information:

1. The company follows the revaluation method of accounting for its PPE. During the year the following asset was revalued: Land was revalued upwards during the year by $30,000.

2. 100,000 shares were issued during the year at a price of $1 per share

3. The company directors declared and paid a dividend of $75,000 during the year.

4. There was a transfer of $15,000 from Retained Earnings to General Reserve during the year.

5. Alanna Ltd uses the single statement format for the Statement of Profit or Loss and Other Comprehensive income and classifies expenses by function.

6. Income tax rate is 30%.

Required:

i. Prepare the Statement of Profit or Loss and Other Comprehensive Income for Alanna Ltd for the year ended 30 June 2018.

ii. Prepare the Statement of Changes in Equity for Alanna Ltd for the year ended 30 June 2018.