Completing this assessment will demonstrate your ability to prepare the required financial statements according to your company's organisational procedures, as well as AASB Standards.

It will also demonstrate your ability to use your problem-solving skills by reviewing the additional information and making adjustments as required to ensure there is no negative impact for reporting.

Enter the information in Hanks Tanks Information into the Hanks Tanks Workbook Template, preparing the following:

An updated trial balance statement based on the trial balance and adjustments provided

An income statement

A balance sheet

A statement of changes of equity

Trial Balance and Adjustments

Trial balance for Hanks Tanks Pty Ltd

Trial Balance as at 30 June 2017

Account Dr $,000 Cr $,000

Buildings 65,625

Accumulated depreciation buildings 5,250

Land 25,875

Mortgage on buildings @ 5% p.a. 25,000

Plant and equipment 10,000

Accumulated depreciation plant and equipment 3,000

Goodwill 12,500

Investments (10% debentures) 5,000

Investments (shares) 22,500

Bank - CBA 12,500

Inventories 30/06/2016 22,500

Share capital 112,500

Asset revaluation reserve 9,875

Retained profits 12,500

Calls in arrears ($0.50 call) 3,000

Interim dividend paid 2,000

Final dividend paid 4,000

Sales 112,500

Interest received from investments 2,750

Audit fees 3,125

Sales commission 4,000

Cost of goods sold 52,500

Bad debts 2,500

Marketing costs 3,000

Sales salaries 8,500

Administrative salaries 3,000

Directors' fees 5,000

General expenses 7,500

Interest on mortgage 5,250

Profit on sale of surplus plant 2,500

Tax payable

Accounts receivable 13,500

Accounts payable 7,500

Debentures on issue 7%

293,375 293,375

Adjustments

Adjustments required as at 30 June 2016

Goodwill has been valued at $1,500,000 less than carrying value

Tax @ 30% on net profit before tax and write down of goodwill

ABC still owes Sales salaries of $300,000

Depreciation on cost of buildings for the year @ 4% p.a.

Depreciation on written down value of plant for the year @ 10% p.a.

$62,000 of General expenses were paid in advance

Doubtful debts were estimated at $450,000

Cinta Group, a major customer of Hanks Tanks, started insolvency proceedings and $500,000 owing from Cinta Goup is to be written off

Revaluation of buildings on 30 June 2016 resulted in an increase of $500,000

Additional information

Cost of goods sold include a write-off of $1,250,000 for damaged goods

General expenses include payments of $1,750,000 to employees

Audit fees include payments of $1,200,000 for consulting (not audit related)

Shares held as assets had a market value of $25,300,000 on 30 June 2015

On 1 July 2013, Hanks Tanks had 100,000,000 ordinary shares paid to $1.

During the year, Hanks Tanks issued 12,500,000 shares, .50 payable on application and .50 on a call. The call money on 6,000,000 shares remain unpaid as at balance date

Directors declared a final dividend of $.10 per participating share payable in August 2016 and require a provision

Shares participating in dividend distributions:

100,000,000 shares in dividends paid and declared during the year ended 30 June 2015

100,000,000 shares in interim dividend 2016

106,500,000 shares in final dividend 2016

Debentures are redeemable on 31 December 2016

2. Send an email to your Manager (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style. It should introduce and summarise the contents of the attachment and ask the Manager for a meeting at their convenience.

Attach your Hanks Tanks Worksheet to the email.

Your assessor will reply to the email with the time and date of a meeting to discuss your statements.

3. Participate in a meeting to discuss financial statements

Begin the meeting by discussing how an accountant could have a conflict of interest or issues with confidentiality when performing such work as you have done in Activity 1. This should be a general discussion that shows that you understand how the company's organisational procedures could influence the way that you have compiled, and could share, the data.

You are required to meet with your Manager and through each of the financial statements with them to check your coding, classifications, and calculations.

You will also be asked to explain the adjustments you made and the rationale for these.

During the meeting, you are required to demonstrate effective interpersonal and communication skills including:

Speaking clearly and concisely

Using effective non-verbal communication skills to encourage audience interest

Responding to questions

Asking questions to seek feedback

Use of active listening techniques to confirm and clarify understanding.

4. Revise your financial statements.

Update your statements to reflect any changes discussed with your Manager.

Save this file as Hanks Tanks Workbook Revised.

5. Send an email to your Manager (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style. It should mention the meeting that you had and summarise any changes that you have made to your Hanks Tanks Workbook.

Attach your Hanks Tanks Revised Worksheet to the email.

Ensure that this email is sent within the time limit given in your accounting company's organisational procedures. Attach screenshot below.

Assessor Use