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Skin Care Ltd is a company specialises in distributing beauty products imported from Korea to beauty salons throughout Australia and operate beauty salons in Albury and Wangaratta cities. The trial balance of the company for the year ended 30 June 2021 includes the following accounts

Debit Credit $

Sales revenue 1,106,000 Interest revenue 8,000 Cost of sales 524,000 Impairment loss goodwill 5,000 Amortisation expense patent 18,000 Gains from sales of motor vehicles 10,000 Depreciation motor vehicles 68,000 Doubtful debts expense. 11,000 Interest expense 21,000 Office expense 85,000 Rental expense 17,000 Salaries 187,000 Selling expense 68,000 Miscellaneous expense 28,000 Proceeds from insurance claims 20,000 Income tax expense 39,000 Cash on hand 4,000 Inventories 92,000 Accounts receivable 118,000 Allowance for doubtful debts 11,000 Bank deposits 130,000 Deferred tax assets 18,000 Patent (cost) 220,000 Accumulated amortisation patent 20,000 Goodwill 100,000 Accumulated impairment losses goodwill 25,000 Motor vehicles 472,000 Accumulated depreciation motor vehicles 203,000 Accounts payable 114,000 Bank loan 175,000 Bank overdraft 13,000 Current tax liabilities 37,000 Deferred tax liabilities 22,000 Paid up capital (ordinary) 400,000 Foreign currency translation reserve 25,000 Retained earnings at 1 July 2020 36,000 2,225,000. 2,225,000

Additional information:

The patent relates to the fees paid to a Korean manufacturer which produces an antiaging product called TrueSelf so that Skin Care Ltd has the sole agency rights to market TrueSelf in Australia for the years until end of 2027.

An interim dividend of $16,000 was paid on 15 December 2020 and the directors have declared a final dividend of $32,000. The foreign currency translation reserve had an opening balance at 1 July 2020 of $10,000. During the year ended 30 June 2021, this reserve was credited with a foreign currency translation gain of $15,000 (after deducting tax on this item of $3,000), in accordance with the relevant accounting standard.

Bank deposits are all with maturity of less than three months. Bank loan has maturity period of more than three years. The following expenses are allocated for administrative and selling and distribution expenses for the purposes of preparation of the statement of profit or loss and other comprehensive income:Required: As the assistant accountant of Skin Care Ltd, prepare the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of financial position for Skin Care Ltd for the year ended 30 June 2021. The statements should be presented in accordance to the requirements of any relevant authorities and/or best practices available. T

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