In this assignment, you will take on the role of accountant for Platinum Ply Ltd, a private company operating from Melbourne, Australia. Platinum Pty Ltd specialises in the production of specialist components for cars, trucks and other land vehicles. These components are constructed from steel, which Platinum purchases in and then either (a) sells on to end customers (car manufacturers) or (b) uses to construct its components. The company has been operating successfully to the end of FY 2019. It is now time to prepare the FY 2020 financial statements. You have been provided the information below. Your task Your task is to prepare the financial statements for FY 2020. Specifically, you are tasked with preparing: 1. A transaction analysis for the FY 2020; 2. A Statement of Profit & Loss for the FY 2020; and 3. A Statement of Financial Position at the end of FY 2020. To assist you in this task, you have been provided (a) a template used in previous years to record the transactions to the appropriate accounts; and (b), a template for the financial statements to be prepared. These are contained in the Excel file accessible on the LMS in the Assignments module and also attached to this email. You have also been provided with the ending balances from the previous year and a summary of the transactions that have occurred during the year. FY 2019 Balances The balances of relevant accounts at the end of FY 2019 are as follows: Account Type Value Borrowings Liability 110060 Cash and cash equivalents Asset 63126 Contributed equily Equity 18537 Current tax payable Liability 4125 Inventories Asset 34138 Investments Asset 112564 Other current assels Asset 2369 Other current liabilities Liability 3146 Property, plant and equipment (Net) Asset 74562 Retained earnings Equity 184669 Trade payables Liability 17331 Trade receivables Asset 51909 The balances of relevant accounts at the end of FY 2019 are as follows: Account Type Value Borrowings Liability 110060 Cash and cash equivalents Asset 63126 Contributed equity Equity 18537 Current tax payable Liability 4125 Inventories Asset 34138 Investments Asset 112564 Other current assols Asset 2369 Other current liabilities Liability 3146 Property, plant and equipment (Net) Asset 74582 Retained earnings Equity 184669 Trade payables Liability 17331 Trade receivables Asset 51909 The opening balance of other current assets is comprised entirely of prepaid insurance The opening balance of other current liabilities is comprised entirely of wages payable. FY 2020 Transaction data A summary of the transactions entered into by the company in FY 2020 are as follows: # Transaction 1 Platinurn Ply Ltd has paid all of its company income tax owing from the previous period. In addition, the company incurs a further $33717 in corporate income tax that it will pay next year. During the year, Platinum Pty Ltd purchased an additional $24000 of computer equipment. Half the amount was paid in cash, with the remaining half on credit. The accountant determines that the credit amount should be allocated 2 to other current liabilities 3 During the year, the accountants at Platinum Pty Ltd determine that depreciation should be recorded at $7456. They estimate that 10% of the depreciation is related to selling activities, with the remaining related administration 4 During the year, Platinum Pty Ltd also purchased S47000 of inventory in cash from its suppliers of higher value add material. 5 During the year, Platinum Pty Ltd purchased $47000 of inventory from its suppliers of raw materials. The inventory was purchased on credit. G During the year Platinum Pty Ltd receives a rental payment of $72243. 7 During the year Platinum Pty Ltd issues 33000 shares to a new investors. These shares are issued at an average price of $2 per share By the end of the year, Platinum Pty Ltd pays off $19003 of debts owing to its trade creditors. By the end of the year, Platinum Ply Ltd uses up the remainder of its previous insurance contract that was prepaid in the previous year, Halfway into the year, the company signs a new contract for the next twelve months of insurance, paving 19200 unfront 8 9 The opening balance of other current assets is comprised entirely of prepaid insurance The opening balance of other current liabilities is comprised entirely of wages payable. FY 2020 Transaction data A summary of the transactions entered into by the company in FY 2020 are as follows: # 1 2 3 4 5 6 7 8 Transaction Platinum Pty Ltd has paid all of its company income tax owing from the previous period. In addition, the company incurs a further $33717 in corporate income tax that it will pay next year. During the year, Platinum Pty Ltd purchased an additional $24000 of computer equipment. Half the amount was paid in cash, with the remaining half on credit. The accountant determines that the credit amount should be allocated to other current liabilities. During the year, the accountants at Platinum Ply Lid determine that depreciation should be recorded at $7456. They estimate that 10% of the depreciation is related to selling activities, with the remaining related to administration. During the year, Platinum Pty Ltd also purchased $47000 of inventory in cash from its suppliers of higher value add material. During the year, Platinum Ply Lid purchased $47000 of inventory from its suppliers of raw materials. The inventory was purchased on credit During the year Platinum Pty Ltd receives a rental payment of $72243. During the year Platinum Ply Ltd issues 33000 shares to a new investors. These shares are issued at an average price of $2 per share. By the end of the year, Platinum Pty Ltd pays off $19003 of debts owing to its trade creditors. By the end of the year, Platinum Ply Lid uses up the remainder of ils previous insurance contract that was prepaid in the previous year. Hallway into the year, the company signs a new contract for the next twelve months of Insurance, paying. $19200 upfront. During the year Platinum Pty Ltd makes $53000 in sales on credit terms of 30 days. These sales were carried in inventory at a value of $10600. During the year, Platinum Pty Ltd incurred $15438 of wages costs. The company has paid this amount in full by the end of the year. In addition, the company also paid all wages owing from previous years. During the year Platinum Pty Ltd makes a sale of S67000. Of this amount, 40% was paid in cash with the remainder on credit terms of 60 days. The inventory for this sale was carried at a value of $13400. At the start of the year, Platinum Pty Ltd extended its lease on its premises for 12 months. Each month of rent costs $500, and the company pays its rent on a monthly basis by direct debit to its bank account. During the year, Platinum Pty Ltd repays 522172 of its bank debt. The remaining borrowings are to be repaid over the following ten years. On the borrowings of Platinum Ply Ltd, during the year the bank charged Platinum Pty Ltd 57760 in interest. This amount was directly charged to the bank account of the company, At the end of the year, Platinum Pty Ltd declares and pays a $17267 dividend to its shareholders. By the end of the year, Platinum Ply Ltd collects from its debtors a total of $46787. 9 10 11 12 13 14 15 16 Borrowings are to be repaid equally over the relevant term. In this assignment, you will take on the role of accountant for Platinum Ply Ltd, a private company operating from Melbourne, Australia. Platinum Pty Ltd specialises in the production of specialist components for cars, trucks and other land vehicles. These components are constructed from steel, which Platinum purchases in and then either (a) sells on to end customers (car manufacturers) or (b) uses to construct its components. The company has been operating successfully to the end of FY 2019. It is now time to prepare the FY 2020 financial statements. You have been provided the information below. Your task Your task is to prepare the financial statements for FY 2020. Specifically, you are tasked with preparing: 1. A transaction analysis for the FY 2020; 2. A Statement of Profit & Loss for the FY 2020; and 3. A Statement of Financial Position at the end of FY 2020. To assist you in this task, you have been provided (a) a template used in previous years to record the transactions to the appropriate accounts; and (b), a template for the financial statements to be prepared. These are contained in the Excel file accessible on the LMS in the Assignments module and also attached to this email. You have also been provided with the ending balances from the previous year and a summary of the transactions that have occurred during the year. FY 2019 Balances The balances of relevant accounts at the end of FY 2019 are as follows: Account Type Value Borrowings Liability 110060 Cash and cash equivalents Asset 63126 Contributed equily Equity 18537 Current tax payable Liability 4125 Inventories Asset 34138 Investments Asset 112564 Other current assels Asset 2369 Other current liabilities Liability 3146 Property, plant and equipment (Net) Asset 74562 Retained earnings Equity 184669 Trade payables Liability 17331 Trade receivables Asset 51909 The balances of relevant accounts at the end of FY 2019 are as follows: Account Type Value Borrowings Liability 110060 Cash and cash equivalents Asset 63126 Contributed equity Equity 18537 Current tax payable Liability 4125 Inventories Asset 34138 Investments Asset 112564 Other current assols Asset 2369 Other current liabilities Liability 3146 Property, plant and equipment (Net) Asset 74582 Retained earnings Equity 184669 Trade payables Liability 17331 Trade receivables Asset 51909 The opening balance of other current assets is comprised entirely of prepaid insurance The opening balance of other current liabilities is comprised entirely of wages payable. FY 2020 Transaction data A summary of the transactions entered into by the company in FY 2020 are as follows: # Transaction 1 Platinurn Ply Ltd has paid all of its company income tax owing from the previous period. In addition, the company incurs a further $33717 in corporate income tax that it will pay next year. During the year, Platinum Pty Ltd purchased an additional $24000 of computer equipment. Half the amount was paid in cash, with the remaining half on credit. The accountant determines that the credit amount should be allocated 2 to other current liabilities 3 During the year, the accountants at Platinum Pty Ltd determine that depreciation should be recorded at $7456. They estimate that 10% of the depreciation is related to selling activities, with the remaining related administration 4 During the year, Platinum Pty Ltd also purchased S47000 of inventory in cash from its suppliers of higher value add material. 5 During the year, Platinum Pty Ltd purchased $47000 of inventory from its suppliers of raw materials. The inventory was purchased on credit. G During the year Platinum Pty Ltd receives a rental payment of $72243. 7 During the year Platinum Pty Ltd issues 33000 shares to a new investors. These shares are issued at an average price of $2 per share By the end of the year, Platinum Pty Ltd pays off $19003 of debts owing to its trade creditors. By the end of the year, Platinum Ply Ltd uses up the remainder of its previous insurance contract that was prepaid in the previous year, Halfway into the year, the company signs a new contract for the next twelve months of insurance, paving 19200 unfront 8 9 The opening balance of other current assets is comprised entirely of prepaid insurance The opening balance of other current liabilities is comprised entirely of wages payable. FY 2020 Transaction data A summary of the transactions entered into by the company in FY 2020 are as follows: # 1 2 3 4 5 6 7 8 Transaction Platinum Pty Ltd has paid all of its company income tax owing from the previous period. In addition, the company incurs a further $33717 in corporate income tax that it will pay next year. During the year, Platinum Pty Ltd purchased an additional $24000 of computer equipment. Half the amount was paid in cash, with the remaining half on credit. The accountant determines that the credit amount should be allocated to other current liabilities. During the year, the accountants at Platinum Ply Lid determine that depreciation should be recorded at $7456. They estimate that 10% of the depreciation is related to selling activities, with the remaining related to administration. During the year, Platinum Pty Ltd also purchased $47000 of inventory in cash from its suppliers of higher value add material. During the year, Platinum Ply Lid purchased $47000 of inventory from its suppliers of raw materials. The inventory was purchased on credit During the year Platinum Pty Ltd receives a rental payment of $72243. During the year Platinum Ply Ltd issues 33000 shares to a new investors. These shares are issued at an average price of $2 per share. By the end of the year, Platinum Pty Ltd pays off $19003 of debts owing to its trade creditors. By the end of the year, Platinum Ply Lid uses up the remainder of ils previous insurance contract that was prepaid in the previous year. Hallway into the year, the company signs a new contract for the next twelve months of Insurance, paying. $19200 upfront. During the year Platinum Pty Ltd makes $53000 in sales on credit terms of 30 days. These sales were carried in inventory at a value of $10600. During the year, Platinum Pty Ltd incurred $15438 of wages costs. The company has paid this amount in full by the end of the year. In addition, the company also paid all wages owing from previous years. During the year Platinum Pty Ltd makes a sale of S67000. Of this amount, 40% was paid in cash with the remainder on credit terms of 60 days. The inventory for this sale was carried at a value of $13400. At the start of the year, Platinum Pty Ltd extended its lease on its premises for 12 months. Each month of rent costs $500, and the company pays its rent on a monthly basis by direct debit to its bank account. During the year, Platinum Pty Ltd repays 522172 of its bank debt. The remaining borrowings are to be repaid over the following ten years. On the borrowings of Platinum Ply Ltd, during the year the bank charged Platinum Pty Ltd 57760 in interest. This amount was directly charged to the bank account of the company, At the end of the year, Platinum Pty Ltd declares and pays a $17267 dividend to its shareholders. By the end of the year, Platinum Ply Ltd collects from its debtors a total of $46787. 9 10 11 12 13 14 15 16 Borrowings are to be repaid equally over the relevant term