Question

This is the Trial Balance of Al Capone Distilleries Pty Ltd (ACD) as of 30th June 2020.

Sales 925000

Interest revenue 20000

Gain on sale of plant & equipment (PPE) 9000

Cost of goods sold 550000

Financing expenses 16000

Selling and distribution expenses 45000

Administrative expenses 28000

Income tax expense 72000

Other details:

(a) Al Capone recognised a revaluation gain of $18 000 net of tax for available-for-sale investments the business held during 2020.

(b) None of the available-for-sale investments were sold during 2020.

(c) The business uses the single statement format for the income statement and other comprehensive income and classifies expenses by function – not by nature.

Required:

You are required to prepare the statement of profit and loss. Also, prepare the other comprehensive income for ACD Pty Ltd, both for the year ended June 30 2020. Please include an analysis of expenses in the correct statement.

Answer 1

925000 ) 20,000 9000 asuooo Gain on Sales Other inven: Inreet revenue sole of per Toral inone Expreses & lors Selling & Distrin Intelt Finance Administranve Toral e expuses 550, ovo 43ovo 16000 28000 639010 31000 Profit before Excephón al itous Revaluation train bomo 297000 Proht before Tan 72000 Tax Profit after tan Scanned by TapScanner