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You have been provided with Poskie Ltds adjusted trial balance. (Poskie Ltd is a wholesaler of cat toys.) From this, please prepare a SOCI and a Statement of Changes in Equity for the year ending 30 June 2020 and a Balance Sheet as of that date. Make sure to follow the form and format prescribed in this course. Note the following:

• The balance of Share Capital on 1 July 2019 was $800,000. An additional $200,000 of shares were issued on 1 December 2019.
• The balance of Prepaid Insurance represents premiums for the next six months.
• The Land and Buildings were revalued for the first time at the end of the current financial year.
• The rent revenue is considered incidental revenue.
• Poskie Ltd does not have an Accumulated Amortisation account in its chart of accounts; rather, the business credits Patents directly with the amortization AJE, and the balance of Patents reflects that process, which is perfectly acceptable.
• Poskie Ltd uses the net purchases method for inventory transactions.

Poskie Ltd

Adjusted Trial Balance

30 June 2020

Cash ................................................................... Accounts Receivable.............................................. Notes Receivable (due in 2020)............................... Interest Receivable................................................ Inventory............................................................. Prepaid Insurance................................................. GST Clearing........................................................ Land ................................................................... Buildings.............................................................. Equipment............................................................ Patents................................................................ Allowance for Doubtful Accounts.............................. Accumulated DepreciationBuildings....................... Accumulated DepreciationEquipment..................... Accounts Payable.................................................. Income Taxes Payable........................................... Salaries and Wages Payable.................................... Unearned Rent Revenue......................................... Notes Payable (due in 2020)................................... Interest Payable.................................................... Loan Payable (due in 2022).................................... Share Capital........................................................ Retained Earnings................................................. Dividends............................................................. Revaluation Reserve, Land..................................... Revaluation Reserve, Building................................. Sales Revenue...................................................... Interest Revenue.................................................. Rent Revenue....................................................... Gain on Disposal of Plant Assets.............................. OCI Revaluation Gain, Land ................................... Bad Debt Expense................................................. Cost of Goods Sold................................................ Sales Discounts..................................................... Depreciation Expense............................................ Income Tax Expense.............................................. Insurance Expense................................................ Interest Expense................................................... Discounts Lost...................................................... Other Operating Expenses...................................... Amortization Expense............................................ Salaries and Wages Expense................................... Loss on Revaluation, Building.................................. Inventory Write-down Loss..................................... Total...............................................................

$16,520 46,200 10,000 600 27,600 2,200 1,200 930,000 700,000 68,780 7,200 12,000 3,700 636,600 30,600 15,494 17,000 2,200 4,140 3,000 61,800 800 112,200 7,500 _____2,000 $2,719,334

$4,000 0 33,744 28,300 17,000 2,200 4,500 11,000 4,140 535,000 1,000,000 63,600 0 0 953,000 600 1,500 750 60,000 _________ $2,719,334

Example Format fro SOCI:

Income statement
For the year ended
Sales	$
Cost of Sales
Gross profit		$ xxx
Operating expenses
Bad Debt
Depreciation
Freight out
`
`
`		xxx
Other Income and expenses
Gain on revaluation
Loss on inventory write-down *		xxx
`
EBIT
Financing costs
Interest expense
Interest revenue
`
`		xxx
Pre-tax profit
Income tax expense
Profit
Other comprehensive income
Gain on revaluation
`
`		xxx
Total comprehensive income		$xxx

SOCE:

Hampton AG Statement of Changes in Equity For the Year Ended December 31, 2020 Share Capital (5 Par) 300,000 Share Premium Retained Earnings 650,000 Treasury Shares (34,000) Total 200,000 1,116,000 25,000 50,000 75,000 (40,000) (40,000) Balance January 1 Issued 5,000 ordinary shares at 15 Declared a 40,000 cash dividend Purchased 2,000 shares for treasury at 16 Net income for year Balance December 31 (32,000) 240,000 850,000 (32,000) 240,000 1,359,000 325,000 250,000 (66,000) Hampton AG Statement of Changes in Equity For the Year Ended December 31, 2020 Share Capital (5 Par) 300,000 Share Premium Retained Earnings 650,000 Treasury Shares (34,000) Total 200,000 1,116,000 25,000 50,000 75,000 (40,000) (40,000) Balance January 1 Issued 5,000 ordinary shares at 15 Declared a 40,000 cash dividend Purchased 2,000 shares for treasury at 16 Net income for year Balance December 31 (32,000) 240,000 850,000 (32,000) 240,000 1,359,000 325,000 250,000 (66,000)

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