Comprehensive problem

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 companys 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 Ltds financial statements for the year. Depreciation to be provided on a straight-line basis on buildings at 5% p.a. and on offce furniture and equipment at 10% p.a. The sale of offce 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 proft 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 companys classified statement of financial position as at 30 June 2020 in accordance with the requirements of IAS 1/AASB 101, using the current/non-current classification.