Account		Debit	Credit
Cash at bank		500.00
Accounts receivable		67,800.00
Allowance for doubtful accounts			12,800.00
Inventory		87,700.00
Prepaid Insurance		7,000.00
Plant and Equipment		222,500.00
Accumulated depreciation - plant and equipment			42,500.00
Land		220,000.00
Buildings		380,000.00
Goodwill		50,000.00
Accumulated impairment losses -goodwill			10,000.00
Government bonds (Long-term)		35,000.00
Shares in Carncotton Ltd		20,000.00
GST Payable			18,400.00
Employee benefit Payable			34,200.00
Accounts Payable			69,500.00
Interest Payable			2,800.00
Dividend Payable			10,000.00
Bank Overdraft (at call)			70,900.00
7% Debentures			80,000.00
Mortgage Loans (secured over land and buildings)			250,000.00
Share Capital (ordinary shares issued at 2$,fully paid)			200,000.00
Retained Earnings			73,400.00
General Surplus			25,000.00
Revaluation Surplus			85,000.00
Sales Revenue			825,000.00
Cost of Sales		450,000.00
General Expenses		265,000.00
Loss on sale of plant		10,000.00
Interest Received			2,500.00
Dividends Received			3,500.00
		1,815,500.00	1,815,500.00
		-
Additional information:
1.) General expenses for the year include the following items:
Depreciation -plant and equipment			17,200.00
Depreciation -building			15,000.00
Employee Benefits			11,600.00
Bad Debts			10,000.00
Interest Expense			28,700.00
Inventory Losses			6,200.00
Discount Allowed			4,200.00
Council rates			16,120.00
Superannuation contributions			7,000.00
2.) The company tax rate is 30%, to be applied to profit before tax
3.) The opening balance of the allowance for doubtful debts was 15,250.
4.) All assets are carried at cost, except for land and buildings , which are arrived at fair value
5.) During the year, 50,000 share were issued at an issue price of $2 each , payable in full on apllication.
6.) On 30 June 2022, the directors revalued land and buildings based on fair values . The carrying amounts of land
and buildings before the revaluation were $195,000 and $350,000 respectively.
7.) The mortgage loan is repayable in annual instalments of $50,000 starting on 1 March.
8.) The debentures are to be redeemed on 31 March 2022. There is no plan to refinance these debentures in the future.
9.) The employee benefits payable consist of the following.
Annual leave			18,400.00
Long service leave			15,800.00
10.) No employee is eligible for long service leave until 2023.
11.) Goodwill is not considered to be impaired
12.) During the year, LAX LTD sold an item of plant for $38,000.The carrying amount of the plant at the date of sale was $48,000.
13.) During the year, an interim dividend of $20,000 was paid, and a final dividend of $10,000 was declared. $25,000 was also transferred to the general reserve. Required: a) Prepare the Statement of Profit or Loss and Other Comprehensive Income for Lax Ltd for the year ended 30 June 2022, according to the requirements of IAS 1/AASB 101. b) Prepare the Retained Earnings account for the year ended 30 June 2022 c.) show the working file.