The following unadjusted trial balance is for the year ended 30 June 2020.

Additional information 1. Billy Goat Ltd is involved in the computer services industry. Leased vehicles are used mainly for delivery and service of computers. The company’s head office, which houses its administrative staff, is located on a prime piece of real estate in the local township.
2. There have been no share issues during the year.
3. The following adjustments are required before preparation of Billy Goat Ltd’s financial statements for the year.

– Depreciation to be provided on a straight-line basis on buildings at 5% p.a. and on office furniture and equipment at 10% p.a. The sale of office furniture occurred at the beginning of the current financial year.

– Goodwill is considered to have fallen in value through impairment by 10% of its original cost.

– Management was informed that a particular debtor was bankrupt and the full account of $12 000 needs to be written off.

– The Allowance for Doubtful Debts account needs to be adjusted to 8% of accounts receivable, after considering the adjustment in the point above.
– Current income tax expense (and tax liability) for the year is estimated to be $8000.
– Accrued wages to staff: sales $1500, administrative $2000.
– Vehicle rental paid in advance at 30 June 2020 amounted to $30 000.
– A dividend of 3c per share is to be declared on shares.
– Land is to be revalued to its fair value of $250 000.
– Transfer $10 000 from the general reserve to retained earnings.

Required

(a) Prepare the journal entries (in general journal form) required by the ten items listed in (3)
above.

(b) Prepare the adjusted trial balance as at 30 June 2020.

(c) Prepare the statement of profit or loss and other comprehensive income, with expenses classified by function, for Billy Goat Ltd for the year ended 30 June 2020 in accordance with the requirements of IAS 1/AASB 101.

(d) Prepare the statement of changes in equity for the year ended 30 June 2020 in accordance with the requirements of IAS 1/AASB 101.

(e) Prepare the company’s classified statement of financial position as at 30 June 2020 in accordance with the requirements of IAS 1/AASB 101, using the currenton-current classification.

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Bank overdraft Vehicle rental expenses Cash at bank Investment in government bonds Goodwill Interest revenue Insurance expense Land BILLY GOAT LTD Unadjusted Trial Balance as at 30 June 2020 Buildings Office furniture and equipment Revaluation surplus Retained earnings (1/7/19) Accumulated depreciation-office furniture and equipment Accumulated depreciation - buildings Accumulated impairment losses - goodwill Allowance for doubtful debts Cost of sales Advertising expense Sales returns and allowances Sales Debit $ 72 000 7500 150 000 Credit $ 178050 30 000 3000 230 000 1 000 000 4800 127 000 89 000 15000 23 000 197 400 12 300 100 000 6000 14700 8700 478 120