Reference no: EM133063379

Question - The general ledger trial balance of Paradiso Ltd, a medical manufacturing and research company, includes the following accounts at 30 June 2022.

Sales revenue $2,600,000

Interest income 4,000

Gain on sale of plant 52,000

Rental income 4,000

Royalty income 20,000

Other revenue 2,000

Cost of sales 1,640,000

Interest on borrowings 66,000

Sundry borrowing costs 2,000

Research expense 102,000

Advertising expense 50,000

Sales staff salaries 194,000

Amortisation of patents 14,000

Freight out 64,000

Shipping supplies 32,000

Depreciation on sales equipment 10,000

Administrative salaries 144,000

Legal and professional fees 26,000

Office rent expense 60,000

Goodwill 15,000

Insurance expense 28,000

Investment 22,000

Depreciation of office equipment 32,000

Stationery and supplies 10,000

Available for sale security 12,000

Miscellaneous expenses 4,000

Income tax expense 62,000

Additional information

Land was revalued upward by $200,000 during the year ended 30 June 2022. The related tax was $60,000.

Paradiso Ltd uses the single statement format for the statement of profit or loss and other comprehensive income.

Required - Prepare the statement of profit or loss and other comprehensive income of Paradiso Ltd for the year ended 30 June 2022 (state the expenses by function). Clearly show all workings if expenses/revenues are combined.