Selling expenses = Loss on sale of delivery vehicle + advertising + sales commission paid + wages sales staff = 1,800 + 136,000 + 190,000 + 215,000 = 542,800 Administrative = administrative staff salaries + insurance and other = 193,000 + 12,000 expenses = 205,000 Income tax = Profit before tax x 30% = 83,390 x 30% = 25,017 Example 2 suggested solution – Comprehensive Income Statement Former report layout (prior to changes to discounts and finance costs) Option 1 Seven Oaks Ltd Statement of Comprehensive Income For the year ended June 30, 2017 $ Revenue 2,324,100 Less Cost of Sales (1,494,150) Gross Profit 829,950 Other Income 15,650 Expenses (excluding Finance Costs) (747,800) Finance Costs (14,410) Profit before income tax 83,390 Income Tax (25,017) Profit after tax for the period 58,373 Other Comprehensive Income Gain on asset revaluation 700,000 Total Other Comprehensive Income 700,000 Total Comprehensive Income for the period 758,373 Option 2 Seven Oaks Ltd Statement of Comprehensive Income For the year ended June 30, 2017 $ Revenue 2,324,100 Less Cost of Sales (1,494,150) Gross Profit 829,950
Selling expenses = Loss on sale of delivery vehicle + advertising + sales commission paid + wages sales staff = 1,800 + 136,000 + 190,000 + 215,000 = 542,800 Administrative = administrative staff salaries + insurance and other = 193,000 + 12,000 expenses = 205,000 Income tax = Profit before tax x 30% = 83,390 x 30% = 25,017 Example 2 suggested solution – Comprehensive Income Statement Former report layout (prior to changes to discounts and finance costs) Option 1 Seven Oaks Ltd Statement of Comprehensive Income For the year ended June 30, 2017 $ Revenue 2,324,100 Less Cost of Sales (1,494,150) Gross Profit 829,950 Other Income 15,650 Expenses (excluding Finance Costs) (747,800) Finance Costs (14,410) Profit before income tax 83,390 Income Tax (25,017) Profit after tax for the period 58,373 Other Comprehensive Income Gain on asset revaluation 700,000 Total Other Comprehensive Income 700,000 Total Comprehensive Income for the period 758,373 Option 2 Seven Oaks Ltd Statement of Comprehensive Income For the year ended June 30, 2017 $ Revenue 2,324,100 Less Cost of Sales (1,494,150) Gross Profit 829,950
Accounting-and-Finance-ATAR-Year-11-and-12-Syllabus-Support-Materials.DOCX