MAA 363 Corporate Accounting – Finn Ltd
PART A The profit before tax, as reported in the statement of comprehensive income of Finn Ltd (an Australian technology company) for the year ended 30 June 2019 amounted to: $9,820,000 including the following revenue and expense items: Rent Revenue $306,000 Windfall Gain $552,000 Doubtful debts expense $61,000 Depreciation (Equipment) $398,900 Depreciation (Buildings) $98,000 Sick leave expense $276,000 Annual leave expense $184,000 Insurance expense $92,000 Fines expense $153,400 The draft statements of financial position of the company at 30 June 2019 and 2018 showed the following assets and liabilities: 2019 ($) 2018 ($) Assets Cash $644,000 $705,000 Inventory $1,380,000 $1,258,000 Accounts receivable $3,989,000 $3,805,000 Allowance for doubtful debts -$319,000 -$294,000 Prepaid insurance $171,000 $159,000 Equipment $3,989,000 $3,989,000 Accumulated depreciation – Equipment…
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