PLEASE ANSWER THE QUESTION : Q8

Lumpy Pillow Trading Limited, a company listed on the Sleeping Beauty Stock Exchange, is a mineral exploration, trading and investment entity. The company trades exclusively in lithium and iron ore components.

You have just been appointed as the chief financial officer of Lumpy Pillow Trading Limited and your first task is to prepare the 2023 end of financial year balance sheet for Lumpy Pillow Trading Limited.

The end of the financial year for the company is December 31. The company operates on a 12-month operating cycle.

The company has provided you the following list of accounts, and the trial balance totals per each account, as at end of their current final year:

Account Name	Trial Balance Figure
Accrued Expenses	$6,000.00
Goodwill	$100,000.00
Trademarks	$30,000.00
Gain on Sale Plant	$30,000.00
Retained Earnings	$249,000.00
Current Investments	$31,600.00
Prepaid Expenses	$9,000.00
Wage Expenses	$70,000.00
Other Payables (Due More than 12 Months)	$3,600.00
Non-Current Investments	$90,000.00
Cash and Cash Equivalents	$50,000.00
Loans Due (Less than 12 Months)	$33,000.00
Unearned Revenue	$13,800.00
Inventory	$162,000.00
Factory and Equipment	$450,000.00
Paid-Up Capital	$500,000.00
Sales Revenue	$400,000.00
Accounts Receivables	$136,000.00
General Reserves	$164,000.00
Notes Payable (11%, $1000, 10 Years)	$210,000.00
Administration Expenses	$9,000.00
Long-Term Loans	$350,000.00
Accounts Payable	$49,200.00
Land	$520,000.00
Car Expenses	$5,000.00

Before leaving his post, the former chief financial officer provided a summary of key additional information as below that may or may not impact the preparation of the balance sheet for the current year. The additional information is listed as follows:

1. The company has been told that due to impairment, the value of the goodwill is $50,000 less that what originally thought.

2. During the year, the company purchased trademarks for $10,000 paying cash. This transaction has yet to be recorded by the company. No gain or loss was recorded on the sale.

3. In 2025 the company expects that it will need to issue additional shares to the value of $600,000 to fund a new project. On August 21, 2023 the company signed an MOU with Jackson Investment for the private placement of half the shares.

4. One of the companys banks informed the company that $10,000 of long-term loans initially thought due on September 1, 2023 is actually due on March 1, 2026.

5. The value of inventory as shown in the trial balance figures is based on historical cost. The accountant in charge of inventory said the net realizable value is $191,000.

6. On December 31, 2023 the CEO informed you that $60,000 of the balance in General Reserves are to be reclassified as Retained Earnings. This adjustment has yet to be made.

Required:

Using the information supplied, prepare a balance sheet/statement of financial position for Lumpy Pillow Trading Limited for the end of 2023 financial year that conforms with IFRS IAS 1 recommendations and requirements of the course.