Credit $200 000 The trial balance of ABC at 30 June 2022 was as shown below. ABC Trial Balance as at 30 June 2022 Debit Share capital (ordinary shares issued at $2, fully paid) General surplus Retained earnings Revaluation surplus Mortgage loan (secured over land and buildings) Bank overdraft (at call) 7% debentures Interest payable Accounts payable Dividend payable Employee benefits payable GST payable Allowance for doubtful debts Accumulated depreciation - plant and equipment Accumulated impairment losses - goodwill Cash at bank $500 Accounts receivable 67 800 Inventory 87700 Prepaid insurance 7000 Plant and equipment 222500 Land 220 000 Buildings 380 000 Goodwill 50 000 Government bonds (long-term) 35 000 Shares in Carcotton Ltd 20 000 Sales revenue Cost of sales 450000 General expenses 265000 Loss on sale of plant 10000 Interest received Dividends received $1815500 25000 73400 85000 250000 70900 80000 2800 68500 10 000 34 200 18400 12800 42500 10000 825000 2500 3500 $1815500 Additional information 1. General expenses for the year include the following items. Depreciation - plant and equipment Depreciation - buildings Employee benefits Bad debts Interest expense Inventory losses Discount allowed Council rates Superannuation contributions $17200 15000 11600 10000 28 700 6200 4200 16120 7000 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 carried at fair value. 5. During the year, 50 000 shares were issued at an issue price of $2 each, payable in full on application. 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 Long-service leave $18400 15800 10. No employee is eligible for long-service leave until 2023. 11. Goodwill is not considered to be impaired. 12. During the year, ABC 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 a Statement of Profit or Loss and Other Comprehensive Income for ABC for the year ended 30 June 2022, according to the requirements of IAS 17AASB 101. b) Prepare the Retained Earnings account for the year ended 30 June 2022