CAPE Accounting Unit 1 · 2019 · Paper 2 · Question 2(a)

Selected accounts and balances from the ledger of Cutting Ltd for the year ended 30 September 2018 are provided: Sales 720 000, Inventory (01 October 2017) 145 600, Sales returns and allowances 17 300, Sales discounts 13 200, Purchases 560 000, Sales salaries expense 62 400, Office salaries expense 21 800, Advertising expense 11 760, Rent expense 8 400, Depreciation expense - store equipment 3 500, Depreciation expense - office equipment 2 800, Office supplies expense 720, Interest revenue 4 000, Interest expense 2 800, Insurance expense 1 860, Rent revenue 1 000, Miscellaneous selling expense 790, Miscellaneous admin expense 650. Additional information: physical inventory on 30 September 2018 was $149 000; corporate tax rate is 25%.

Prepare a multi-step statement of comprehensive income for Cutting Ltd in accordance with IAS 1 and IFRS for SMEs.