Task:Prepare an Income Statement and Balance Sheet as at 30 June 2018 for Blue Sky...

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Task:Prepare an Income Statement and Balance Sheet as at 30 June 2018 for Blue Sky DistributionPtyLtdBlue Sky DistributionPtyLtd is a supplier of a range of printed material to businesses andorganisations. The business is located inAdelaide Hills, South Australia.Prepare an Income Statement (P&L) which includes allocation of income and expenses, and a Balance Sheet for Blue Sky Distribution in vertical format for the period ended 30 June 2018. Prepare your work on excel using a spreadsheet.Note these accounts are for internal reporting only and is not a Trial Balance (for those who have an accounting background or access to an advisor).You may need to research the Income Statement and Balance Sheet layouts and adjustments from other sources other than the textbook; however, the wider references provided in your course material contain the relevant accounting information.You are provided with the following balances extracted from Blue Sky Distribution's General Ledger at XXXXXXXXXX:All amounts in A$Accounts payable237,500Accounts receivable (debtors)292,000Advertising expense17,000Allowance for doubtful debts32,000Amortisationof Goodwill7,000Amortisationof R&D10,000Asset Revaluation Reserve140,000Bad debts expense25,000Carrying amount / Book value of delivery vehicle sold20,000Cash at Bank135,000Cost of Goods Sold / Cost of Sales2,165,100Income tax liability for current year128,610Depreciation of motor vehicles62,000Depreciation of office furniture33,000Design Services rendered to clients185,000Freight In11,075Freight Out22,000General Reserve275,000Goodwill (at cost)108,000Gross proceeds on Sale of delivery vehicle31,000GST compliance fee22,800Accumulatedamortisation– Goodwill7,000Accumulatedamortisation– R&D10,000GST owing to ATO28,800Income tax expense for the current year128,610Depreciation of retail store equipment8,000Depreciation of retail store25,000Insurance expense42,000Interest expense4,200Interest payable1,500Inventory415,000Land and Buildings (cost)300,000Mortgage loan payable202,500Motor vehicles (at cost)436,000Office furniture (at cost)72,000Prepaid Insurance8,500Prepaid rent6,500Provision for ordinary dividend80,000Provision for preference dividend40,000Rates expense15,000Rent expense36,200Rental revenue from sub-lease agreement12,000Research & Development (R&D) costs80,000Retail store (at fair value)925,000Retained Income (after dividends and reserve transfer at XXXXXXXXXX)130,000Salaries - Administrative staff354,000Salaries payable31,000Sales Commissions - marketing staff406,000Sales discount allowed15,000Sales (turnover)3,750,000Sales staff vehicle expenses38,000Share issue costs27,000Retail store equipment (at cost)93,000Accumulated depreciation – motor vehicles180,000Accumulated depreciation – office furniture38,000Accumulated depreciation – retail store equipment27,000Accumulated depreciation – retail store25,000Preference share capital (400,000 shares issued at $1 each)Ordinary share capital (350,000 shares issued at $2 each)Scope:This assignment will assess your understanding of the course topics 1-2Length and Presentation:You need to submit an Income Statement, Balance Sheet and Notes page inPDFformatCriteria by which your assignment will be marked:FEATUREWEIGHTING %Produce an Income Statement (P&L) that contains all the revenue and expense items in the correct format30%Produce a Balance Sheet that contains all the provided Asset, Liability and Owner's Equity items in the correct format30%Notes - quality of explanatory text15%Format /layout, clear presentation and quality of response15%Work that comes to a logical answer (not necessarily examiners)10%Total100%

Kiran · Accepted Answer

Sheet1
	Blue Sky DistributionPtyLtd
	Income Statement 
	For the year ended 30.6.2017
	Sales	3750000
	Less: sales discount allowed	15000
	Net Sales			3735000
	Less:

Task: Prepare an Income Statement and Balance Sheet as at 30 June 2018 for Blue Sky DistributionPtyLtd Blue Sky DistributionPtyLtd is a supplier of a range of printed material to businesses...

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	All amounts in A$
Accounts payable	237,500
Accounts receivable (debtors)	292,000
Advertising expense	17,000
Allowance for doubtful debts	32,000
Amortisationof Goodwill	7,000
Amortisationof R&D	10,000
Asset Revaluation Reserve	140,000
Bad debts expense	25,000
Carrying amount / Book value of delivery vehicle sold	20,000
Cash at Bank	135,000
Cost of Goods Sold / Cost of Sales	2,165,100
Income tax liability for current year	128,610
Depreciation of motor vehicles	62,000
Depreciation of office furniture	33,000
Design Services rendered to clients	185,000
Freight In	11,075
Freight Out	22,000
General Reserve	275,000
Goodwill (at cost)	108,000
Gross proceeds on Sale of delivery vehicle	31,000
GST compliance fee	22,800
Accumulatedamortisation– Goodwill	7,000
Accumulatedamortisation– R&D	10,000
GST owing to ATO	28,800
Income tax expense for the current year	128,610
Depreciation of retail store equipment	8,000
Depreciation of retail store	25,000
Insurance expense	42,000
Interest expense	4,200
Interest payable	1,500
Inventory	415,000
Land and Buildings (cost)	300,000
Mortgage loan payable	202,500
Motor vehicles (at cost)	436,000
Office furniture (at cost)	72,000
Prepaid Insurance	8,500
Prepaid rent	6,500
Provision for ordinary dividend	80,000
Provision for preference dividend	40,000
Rates expense	15,000
Rent expense	36,200
Rental revenue from sub-lease agreement	12,000
Research & Development (R&D) costs	80,000
Retail store (at fair value)	925,000
Retained Income (after dividends and reserve transfer at XXXXXXXXXX)	130,000
Salaries - Administrative staff	354,000
Salaries payable	31,000
Sales Commissions - marketing staff	406,000
Sales discount allowed	15,000
Sales (turnover)	3,750,000
Sales staff vehicle expenses	38,000
Share issue costs	27,000
Retail store equipment (at cost)	93,000
Accumulated depreciation – motor vehicles	180,000
Accumulated depreciation – office furniture	38,000
Accumulated depreciation – retail store equipment	27,000
Accumulated depreciation – retail store	25,000
Preference share capital (400,000 shares issued at $1 each)
Ordinary share capital (350,000 shares issued at $2 each)

FEATURE	WEIGHTING %
Produce an Income Statement (P&L) that contains all the revenue and expense items in the correct format	30%
Produce a Balance Sheet that contains all the provided Asset, Liability and Owner's Equity items in the correct format	30%
Notes - quality of explanatory text	15%
Format /layout, clear presentation and quality of response	15%
Work that comes to a logical answer (not necessarily examiners)	10%
Total	100%