i. Depreciation on vehicles at the rate of 10% p.a. and on buildings at the rate of 5% p.a. for the whole year ii. The allowance for doubtful debts at 30 June 2017 is estimated to be $160,000 iii. Unrecorded and unpaid travellers’ salaries amount to $100,000 vi Prepaid general expenses amount to $15,000 v. Income tax provided for totals $3,504,000 vi A final dividend is recommended for a total of $2,500,000 vii. $1,000,000 is to be transferred to a general reserve viii. Land is revalued to its fair value of $11,000,000 ix.. Roxy Ltd pays income tax at the rate of 30%. x. On 21st June 2017, Roxy Ltd was notified of an impending legal suit for $17,000 against the company for breach of contract. The case was settled 15th July 2017 xi. The share capital consists of 67,000,000 ordinary shares of $1 each xii. On 20 September 2017, Roxy Ltd issued 100,000 fully paid shares to acquire the net assets of ABC Pty Ltd at price of $2.5 per share. xiii. On 28 July 2017 the Commonwealth government enacts legislation altering the company income tax rate from 39 per cent to 42 per cent for all income tax returns from 1 July 2017 Required: 1) Prepare necessary adjusting journal entries for the above events. 2) Prepare a Statement of Comprehensive Income, for ROXY Ltd for the year ended 30th June 2017 in accordance with the requirements of AASB 101.
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