NUSTAR Ltd, retailing business for telescopes, commenced operations on 1 July, 2019 by issuing 500 000 $2.00 shares, payable in full on application. There were no share issue costs.

For the year ending 30 June 2021, the company recorded the following aggregate transactions:

Accounts	$’000
Sales of goods	900
Gain from trading securities	20
Cost of sales	450
Administration charges	20
Selling and distribution expenses	10
Employee entitlement expenses (selling)	8
Employee entitlement expenses (administrative)	4
Wages and salaries (selling)	120
Wages and salaries (administrative)	80
Doubtful debts expense	8
Depreciation expense - warehouses and equipment (selling)	To be calculated
Depreciation expense - buildings (administrative)	To be calculated
Finance expense	30
Other borrowing expense	20
Income tax expense	46

The following additional information was noted during the preparation of financial statements for the year ended 30 June 2021:

• Inventory was measured at the lower of cost and net realisable value.
• Buildings, warehouses and equipment were measured at cost. The benefits were expected to be received evenly over the useful life of the asset. The residual values are negligible.
• Trading securities are equity investments that are held for the purpose of selling and short-term profit taking.
• Additional shares were issued and fully paid on the following dates during the 2021 financial year:

1 Jan 2021: 50 000 ordinary shares issued/fully paid @ $2.00

1 April 2021:  90 000 ordinary shares issued/fully paid @ $2.00

• A cash dividend of $22 000 (3.4 cents per share) was declared and paid during the 2021 financial year.
• $20 000 of bank loans are repayable within 1 year. The remaining amount is payable in full at the end of 2030. The loans are secured over the land.
• $150 000 of other loans are repayable within 1 year. The remaining amount is payable in full at the end of 2024.
• The provision for employee benefits includes $20 000 payable within 1 year.
• The warranty provision is in respect of a 12-month warranty given on certain goods sold.
• The following assets were carried at cost:

Asset	Cost ($)	Useful life (years)
Buildings (acquired on 1 July 2019)	500 000	20
Warehouses and equipment (acquired on 1 July 2019)	200 000	10

• Land was revalued upward by $5 000 to $125 000 (assume zero income tax for this transaction). There had been no previously recognised reserve for revaluation surplus. The valuation was conducted by the registered valuer, The Invaluable Pty Ltd.
• NUSTAR Ltd transferred $10 000 out of retained earnings into general reserve.

• Summarised account balances are provided below:

Year-end balances, 30 June 2021	$’000
Cash on hand	80
Cash on deposit, at call	55
Trade debtors	1 600
Allowance for doubtful debts	20
Other debtors	850
Raw materials	60
Work in progress	70
Finished goods	70
Trading securities	25
Land	125
Buildings	500
Accumulated depreciation – buildings	To be calculated
Warehouses and equipment	200
Accumulated depreciation – warehouses and equipment	To be calculated
Patents	150
Amortisation of patent	15
Bank loans	553
Other loans	300
Trade creditors	1 200
Provision for employee benefits	50
Warranty provision	45
Current tax payable	40
Deferred tax liability	35

• Summarised account balances for the equity section at the end of the prior financial year (i.e., 2020) are provided below:

Year-end balances, 30 June 2020	$’000
Share Capital, 30 June 2020	1 000
Retained earnings, 30 June 2020	95

Required:

For the year ending 30 June 2021 (NOTE: comparative financial statements are not required),

1. Using the pro forma table supplied in appendix B, prepare a preliminary trial balance for NUSTAR Ltd; (5 Marks)