1. OSH Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and presents an analysis of expenses by function in the statement. The financial statements are authorised for issue on 15th March 2020.

2. OSH Ltd uses the periodic inventory system. The stock-take of 31st December shows closing inventory of $145,200 (considering lower of cost and net realizable value).

3. At year end, land was revalued to its fair value of $ 410,000

4. Items of property, plant and equipment are depreciated as follows:

Vehicles 15% on cost - selling and distribution expense

Plant and Machinery 10% on carrying amount -selling and distribution expense

Store Equipment 15 % on cost - administrative expense

5. Increase the allowance for doubtful debts to 10% of accounts receivable.

6. 20% of wages and salaries relate to selling and distribution activities.

7. A final dividend of 25 cent per ordinary share of paid-up-capital was declared and approved at 31st December 2019.

8. A transfer of 23,000 was made from retained earnings into general reserve.

9. Interest on loan is 5% per annum and is payable twice yearly on 30 June and 31st December. The amount due at 31t December has not been recognised.

10. On 20th March 2020, OSH Ltd received notification that a customer owing $80 000 had gone into liquidation. The liquidator advised that unsecured creditors are likely, as a fire in February 2020 destroyed the customer's operating plant and warehouse. The damage was not covered by insurance. Assume that OSH Ltd expects its growth and related profit for the following year to increase by 5%.

11. Contributed Capital at 01/01/2019 consists of 600,000 ordinary shares issued and paid to $1.

12. The Income Tax Rate is 30%.

Required: 1. Provide the journal entries for the adjusting transactions/events and indicate the nonadjusting events (if any) with an explanation.

Trial Balance of OSH Ltd as at 31st December 2019 DR CR Sales revenue 1,534,500 Retained earnings (01.01.2019) 191,400 General reserve (01.01.2019) 148,750 Other Revenue Interest 105,700 Wages and Salaries expense 414,500 Sales Commission 102,100 Land at cost 250,000 Vehicles at cost 410,000 Accumulated depreciation (01.01.2019) - Vehicles 61,500 Plant and Machinery at cost 350,000 Accumulated depreciation (01.01.2019) - Plant & Machinery 35,000 Store Equipment 515,000 Accumulated depreciation (01.01.2019)- Store Equipment 77,250 Purchases 416,700 Inventory (01.01.2019) 111,300 Interest expense 7,500 Bank loan 300,000 Trade receivables 131,400 Provision for doubtful debt 11,000 Trade payables 85,000 Cash at hand 101,300 Commonwealth Bank of Australia Term Deposit due 31.03.2019 165,000 Sales return 10,000 Utilities Expense 75,000 Freight Inward 15,300 Interim dividend paid 75,000 Contributed capital 600,000 $3,150,100 $3.150,100