7. Liontown Co-operative was formed to produce souvenirs for the booming tourist market. The co-operative started with share capital of $55 000 in $1 shares. The co-operative is now two years old and records the following information for the first two years of operation. 31 December 2010 $ 38 000 70 000 21 000 2 300 Cost of sales Sales Expenses Creditors Loans to members Interest due from members Loan from Cooperative Union Bank Equipment Portable stalls Inventory Bank 31 December 2011 $ 81 000 290 000 46 000 4 600 120 300 2 100 100 000 40 000 4 500 29 300 126 400 5 100 60 500 The co-operative paid out dividends of 10 per share in its first year of operation and transferred the remainder to a Members' Education Fund. (c) For the year ended 31 December 2011, the Board of Directors records a surplus of $157 500. The board plans to transfer $32 600 to the Members' Education Fund pay out $27 500 in dividends leave the remainder as undistributed profits. Prepare a classified Balance Sheet for Liontown Co-operative for the year ended 31 December 2011 (second year of operation) taking the appropriation of the surplus into consideration. (10 marks) Total 20 marks 7. Liontown Co-operative was formed to produce souvenirs for the booming tourist market. The co-operative started with share capital of $55 000 in $1 shares. The co-operative is now two years old and records the following information for the first two years of operation. 31 December 2010 $ 38 000 70 000 21 000 2 300 Cost of sales Sales Expenses Creditors Loans to members Interest due from members Loan from Cooperative Union Bank Equipment Portable stalls Inventory Bank 31 December 2011 $ 81 000 290 000 46 000 4 600 120 300 2 100 100 000 40 000 4 500 29 300 126 400 5 100 60 500 The co-operative paid out dividends of 10 per share in its first year of operation and transferred the remainder to a Members' Education Fund. (c) For the year ended 31 December 2011, the Board of Directors records a surplus of $157 500. The board plans to transfer $32 600 to the Members' Education Fund pay out $27 500 in dividends leave the remainder as undistributed profits. Prepare a classified Balance Sheet for Liontown Co-operative for the year ended 31 December 2011 (second year of operation) taking the appropriation of the surplus into consideration. (10 marks) Total 20 marks