On 1 July 2020, Jane Ltd, an Australian company, acquired all of the issued shares of Doe Ltd, a company incorporated in the US. The financial statements of profit or loss and other comprehensive income and statement of financial position of Doe Ltd at 30 June 2020 and 30 June 2021 were as follows:

3.If the functional currency for Jane Ltd is the US dollar, prepare the financial statements of Jane Ltd at 30 June 2021 in the presentation currency of the Australian dollar.

4. Verify the foreign currency translation adjustment.

Doe Ltd (30.6.2020) Doe Ltd (30.6.2021) Sales Revenue Cost of goods sold Opening Inventory Purchases Closing Inventory 312,700 362,400 20,000 160,000 37,000 30,000 120,000 20,000 130,000 182,700 2,000 13,750 41,750 129,200 4,200 125,000 50,000 Gross Profit Gains Depreciation expense Other expenses Profit before income ta>x Income tax expense Profit for the year Retained earnings (Opening Balance) Dividend paid Dividend declared Retained Earnings (Closing Balance) Share Capital General Reserve Total Equity Trade payables Other current liabilities Deferred Tax Liabilities Provisions Total Liabilities Total Equity and Liabilities Assets Cash at bank Trade receivables Inventories 219,400 12,000 40,000 66,950 124,450 4,620 119,830 175,000 10,000 30,000 254,830 300,000 10,000 564,830 138,970 175,000 300,000 10,000 485,000 33,000 85,000 22,000 75,000 215,000 700,000 32,200 76,000 335,170 900,000 290,000 120,500 20,000 100,000 200,000 35,000 357,830 75,220 37,000 150,000 350,000 75,000 4,950 900,000 Plant and machinery Accumulated depreciation plant and machinery Deferred Tax Assets Total Assets 700,000 Exchange rates based on equivalence to 1 US$ were as follows: AUD 1.7.2020 1.10.2020 1.1.2021 1.3.2021 1.6.2021 30.6.2021 Average for May-June (2020-2021) Average rate for 2020-2021 Doe Ltd (30.6.2020) Doe Ltd (30.6.2021) Sales Revenue Cost of goods sold Opening Inventory Purchases Closing Inventory 312,700 362,400 20,000 160,000 37,000 30,000 120,000 20,000 130,000 182,700 2,000 13,750 41,750 129,200 4,200 125,000 50,000 Gross Profit Gains Depreciation expense Other expenses Profit before income ta>x Income tax expense Profit for the year Retained earnings (Opening Balance) Dividend paid Dividend declared Retained Earnings (Closing Balance) Share Capital General Reserve Total Equity Trade payables Other current liabilities Deferred Tax Liabilities Provisions Total Liabilities Total Equity and Liabilities Assets Cash at bank Trade receivables Inventories 219,400 12,000 40,000 66,950 124,450 4,620 119,830 175,000 10,000 30,000 254,830 300,000 10,000 564,830 138,970 175,000 300,000 10,000 485,000 33,000 85,000 22,000 75,000 215,000 700,000 32,200 76,000 335,170 900,000 290,000 120,500 20,000 100,000 200,000 35,000 357,830 75,220 37,000 150,000 350,000 75,000 4,950 900,000 Plant and machinery Accumulated depreciation plant and machinery Deferred Tax Assets Total Assets 700,000 Exchange rates based on equivalence to 1 US$ were as follows: AUD 1.7.2020 1.10.2020 1.1.2021 1.3.2021 1.6.2021 30.6.2021 Average for May-June (2020-2021) Average rate for 2020-2021