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: 
Please show the solution for part 1
Doe Ltd (30.6.2020) Doe Ltd (30.62021 Additional information: On 1 October 2020, depreciated evenly over a 10-year period. In addition, the land on hand at the beginning of the year was sold for USS 112 000 on the same date. The carry ing amount of the land at the date of sale was USS 100 000 Doe Ltd paid USS50 000 for a sonic which is to be Sales Revenue Cost of goods sold Opening Inventory 312,700 362,400 Closing Inventory 20,000 37,000 On 1 January 2021, Doe Ltd acquired a new plant for USS100 000. This plant has a Gross Profit 219,400 useful life of 5 years. Doe Ltd ex pects to consume the benefits of this plant evenly over its life. On 1 March 2021, Doe Ltd acquired SUS 150 000 worth of land 13,750 40,000 66,950 Other expenses Profit before income tax 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 Movements in Land, Plant and Machinery over the year ended 30 June 2021 were as Plant 19,830 Opening balance USS100 000 Opening USS120 000 Opening US$80 000 10,000 Sale (100 000) 150 000 150 000 Purchase Purchase 110.2020 Closing balance 100 000 138,970 Closing Balance Closing balance 30.6.2021 220 000 130 000 Other current liabilities Deferred Tax Liabilities Total Liabilities Total Equity and Liabilities 85,000 22,000 335,170 Accumulated depreciati Open Accumulated recia on - Machiner Opening baane US$20 000 1.7.2020 balanceUSS15 000 Cash at bank Trade receivables 357,830 5,220 37,000 Depreciation Old 15 000 Depreciation New 10 000 Closing DepreciationOld 11 250 Machiner DepreciationNew 3 750 Machinery Closng 120,500 0,000 Plant and machinery Accumulated depreciation-plant and machinery Deferred Tax Assets Total Assets balance 45 000 balance 30 000 35,000 4,500 5,000 4,950 30.6.2021 .Doe Ltd declared dividends of US$40 000 for the year ended 30 June 2021 . A quarter January 2021 while the of these were the interim dividends declared and paid on remaining were declared on 1 June 2021 Exchange rates based on equivalence to 1 USS were as follows: 1.7.2020 .Sales. purchases, and expenses occurred evenly throughout the period. The closing inventories on 30 June 2021 were acquired during the last 2 months of the financial year ended 30 June 2021 Required: 1. If the functional currency for Jane Ltd is the Australian Dollar, prepare the financial statements of Jane Ltd at 30 June 2021 in the functional currency Average for May-June (2020-2021) Average rate for 2020-2021 2. Verify the foreign currency translation ad justment. Doe Ltd (30.6.2020) Doe Ltd (30.62021 Additional information: On 1 October 2020, depreciated evenly over a 10-year period. In addition, the land on hand at the beginning of the year was sold for USS 112 000 on the same date. The carry ing amount of the land at the date of sale was USS 100 000 Doe Ltd paid USS50 000 for a sonic which is to be Sales Revenue Cost of goods sold Opening Inventory 312,700 362,400 Closing Inventory 20,000 37,000 On 1 January 2021, Doe Ltd acquired a new plant for USS100 000. This plant has a Gross Profit 219,400 useful life of 5 years. Doe Ltd ex pects to consume the benefits of this plant evenly over its life. On 1 March 2021, Doe Ltd acquired SUS 150 000 worth of land 13,750 40,000 66,950 Other expenses Profit before income tax 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 Movements in Land, Plant and Machinery over the year ended 30 June 2021 were as Plant 19,830 Opening balance USS100 000 Opening USS120 000 Opening US$80 000 10,000 Sale (100 000) 150 000 150 000 Purchase Purchase 110.2020 Closing balance 100 000 138,970 Closing Balance Closing balance 30.6.2021 220 000 130 000 Other current liabilities Deferred Tax Liabilities Total Liabilities Total Equity and Liabilities 85,000 22,000 335,170 Accumulated depreciati Open Accumulated recia on - Machiner Opening baane US$20 000 1.7.2020 balanceUSS15 000 Cash at bank Trade receivables 357,830 5,220 37,000 Depreciation Old 15 000 Depreciation New 10 000 Closing DepreciationOld 11 250 Machiner DepreciationNew 3 750 Machinery Closng 120,500 0,000 Plant and machinery Accumulated depreciation-plant and machinery Deferred Tax Assets Total Assets balance 45 000 balance 30 000 35,000 4,500 5,000 4,950 30.6.2021 .Doe Ltd declared dividends of US$40 000 for the year ended 30 June 2021 . A quarter January 2021 while the of these were the interim dividends declared and paid on remaining were declared on 1 June 2021 Exchange rates based on equivalence to 1 USS were as follows: 1.7.2020 .Sales. purchases, and expenses occurred evenly throughout the period. The closing inventories on 30 June 2021 were acquired during the last 2 months of the financial year ended 30 June 2021 Required: 1. If the functional currency for Jane Ltd is the Australian Dollar, prepare the financial statements of Jane Ltd at 30 June 2021 in the functional currency Average for May-June (2020-2021) Average rate for 2020-2021 2. Verify the foreign currency translation ad justment
