GETFIT Ltd, a retail sports equipment company, commenced operations on 10 May 2019 by issuing 200 000 $1.25 shares, payable in full on application on a first-come, first-served basis. By 20 June 2019 the shares were fully subscribed and duly allotted. There were no share issue costs. The company did not commence trading until 1 July 2019.2 For the year ending 30 June 2020, the company recorded the following aggregate transactions: + S 1 112 DO 3 000 651 000 13 000 5 000 Sales - Interest income Cost of Sales - Sundry income Employee entitlements expenses. Selling Depreciation expense to be calculated Selling & Distribution Expenses Administration expenses Wages & Salaries selling Wages & Salaries . office Doubtful debts expense Interest expense Other borrowing expenses Income tax expense 82 000 26 000 90 000 30 000 8 000 7 000 3 000 28 500 The following additional information was noted during the preparation of financial statements for the year ended 30 June 2020: (a) A cash dividend of 5 cents per share was declared and paid during the 2020 financial year and a final dividend for 2020 of $22 000 was proposed but not recognised in the financial statements. (b) The land was revalued upward by $20 000 (related income tax 6 000) by Real Valuations Pty Ltd during the year ended 30 June 2020. - (c) Transferred $10 000 out of retained earnings into general reserve. (d) $40 000 of other loans is repayable in one year. (e) The Bank loan is for 5 years and repayable in full at the end of the term. The interest rate is 7% and it is secured over the land, (f) The provision for employee entitlements includes $4 000 payable within 1 year. - (8) GETFIT Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and classifies expenses by function within the statement : (h) GETFIT Ltd measures inventory at the lower of cost and net realizable value. The cost model is applied to buildings, plant and equipment: The following assets were purchased on 1 July 2019: Asset Fixtures & Fittings Buildings Cost $ 150 000 80 000 Useful life (years) 52 20- Summarised account balances are provided below: Year-end balances, 30 June 2020 - Bank Overdraft Cash on hand Cash on deposit, at call Accounts receivable - trade Allowance for doubtful debts/ impairment Other receivables Inventories, 30 June 2020 Land - Franchise Accumulated amortisation of franchise Debentures 10 year 4%. Bank loans Other loans Accounts payable-trade Provision for employee entitlements - Current tax liability Deferred tax assets Deformed tax liability Retained earnings Transfer to General Reserve Share Capital Dividends paid Land revaluation surplus 12 000 3 500 59 700 48 000 8 000 6 000 46 000 60 000 100 000 22 000 60 000 100 000 55 000 30 000 5 000 25 900 4 500 8300 10 000 250 000 10 000 14 000 For the year ending 30 June 2020 (NOTE: comparative financial statements are not required), 1. Using the pro forma table supplied in appendix B, prepare a preliminary trial balance for Getfit Ltd; (5 Marks) 2. Prepare a statement of comprehensive income for Getfit Ltd in accordance with the requirements of AASB 101. Getfit Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and classifies expenses by function within the statement: _(15 marks) 3. Prepare a statement of changes in equity for Getfit Ltd in accordance with the requirements of AASB 101; (8 marks) 4. Prepare a statement of financial position for Getfit Ltd in accordance with AASB 101. Use the currenton-current presentation format_(12 marks) 5. Prepare appropriate notes to the accounts. (You do not need to prepare notes related to income taxes. Include the following note as note 1. You may optionally add accounting policies to this note):_(20 marks). "1. Summary of significant accounting policies Basis of accounting The financial report is a general purpose financial report which has been prepared on the historical cost basis, except where stated otherwise. Statement of Compliance The financial statements have been prepared in accordance with the requirements of the Corporations Act, Australian Accounting Standards which include Australian equivalents to International Financial Reporting Standards (AIFRSs) and AASB Interpretations. Compliance with AIFRSs ensures the financial statements and notes comply with International Financial Reporting Standards