The following information relates to Dumadeal Ltd 30 Jun 2019 Share capital 100
ID: 2600059 • Letter: T
Question
The following information relates to Dumadeal Ltd 30 Jun 2019 Share capital 100 000 10% cumulative reference shares issued at $1 each 200 000ordinary shares issued atS1 each General reserve (balance ljuly 2018) Retained earnings (balance1 july 2018) Revenue Profit before income tax (and items listed below) Interest expense Paid damages on lawsuit Gain on sale of property plant and equipment $100 000- $200 000 $55 000 S50 000. $1 550 000 $190 000. $23 000 $50 000 $105 000 Additional information During the year ended 30 june 2019: (a) Directors declared and paid dividends of 5% on the preference shares and 10c per share interim on ordiary shares (b) Assume the tax rate is 30% for estimating income tax expense. equired a. Prepare the statement of profit or loss and other comprehensive income for the year ended 30 June 2019 in accordance with current accounting standards b. Prepare the statement of changes in equity for the year ended 30 June 2019.Explanation / Answer
a) Dumadeal Ltd. (Amount in $)
Statement of profit or loss and other comprehensive income for the year ended 30 June, 2019
b) Statement of changes in equity for the year ended 30 june 2019 (Amount in $)
Revenue 1,550,000 Less: Total Cost and operating expenses (1,550,000-190,000) (1,360,000) Profit from operations (given) 190,000 Less: Finance costs (23,000) Profit before tax 167,000 Less: Tax expense (30% of $167,000) (50,100) Net profit after tax (A) 116,900 Other comprehensive Income Gain on sale of property, plant and equipment (B) 105,000 Damages on lawsuit (C) (50,000) Comprehensive Income (A+B-C) 171,900 Preference dividends (100,000*5%) 5,000 Interim dividend on ordinary shares (200,000*0.10) 20,000 Earning Per Share (171,900-5,000)/200,000 0.8345Related Questions
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