Problem 23.7 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME, STATEMENT OF FINANCIAL POSITION AND RETAINED EARN LO 2, 3, 4 The trial balance of Le Max Led at 30 June 2019 was as shown below. LE MAX LTD Trial Balance as at 30 June 2019 Share capital (ordinary shares issued at $2, fully paid) General surplus Debit Credit Retained earnings $ 200 000 Revaluation surplus 25 000 73 400 Mortgage loan (secured over land and buildings) 85 000 Bank overdraft (at call) 250 000 7% debentures 70 900 Interest payable 80 000 Accounts payable 2 800 Dividend payable 69 500 Employee benefits payable 10 000 GST payable 34 200 Allowance for doubtful debts 18 400 12 800 Accumulated depreciation - plant and equipment 42 500 Accumulated impairment losses - goodwill Cash at bank 10 000 Accounts receivable S 500 Inventory 67 800 Prepaid insurance 87 700 Plant and equipment 7 000 Land 222 500 Buildings 220 000 Goodwill 380 000 50 000 Government bonds (long-term) 35 000 Shares in Carncotton Ltd 20 000 Sales revenue 825 000 Cost of sales 450 000 General expenses 265 000 Loss on sale of plant 10 000 Interest received 2 500 Dividends received 3 500 $1 815 500 $1 815 500 Additional information (a) General expenses for the year include the following items: Depreciation - plant and equipment $ 17 200 Depreciation - buildings 15 000 Employee benefits 11 600 Bad debts 10 000 Interest expense 28 700 Inventory losses Discount allowed 6 200 Council rates 4 200 Superannuateon contributions 16 120 7 000ESEL.... Country:....... BROWN DARK GUINEAN .. Complexion: ...... BROWN RONN Hair colour: ..... Class : ... provisional full .. 7:2:19. Place of issue: .. MVIL. . PORT MORESBY years . (b) The company tax rate is 30%, to be applied to profit before tax. (c) The opening balance of the allowance for doubtful debts was $15 250. (a) All assets are carried at cost, except for land and buildings, which are carried at fair value (e) During the year, 50 000 shares were issued at an issue price of $2 each, payable in full on application. 1) On 30 June 2019, the directors. revalued land and buildings based on fair values. The carrying amounts of land and buildings before the revaluation were $195 000 and $350 000 respectively. (8) The mortgage loan is repayable in annual instalments of $50 000 starting on 1 March. (h) The debentures are to be redeemed on 31 March 2020. There is no plan to refinance these debentures in the future. (i) The employee benefits payable consist of: Annual leave $18 400 Long-service leave 15 800 (j) No employee is eligible for long-service leave until 2023. (k) Goodwill is not considered to be impaired. dige (1) During the year, Le Max Ltd sold an item of plant for $38 000. The carrying amount of the plant at the date of sale was $48 000. (m) During the year, an interim dividend of $20 000 was paid, and a final dividend of $10 000 was declared. $25 000 was also transferred to the general reserve. Required A. Prepare a statement of profit or loss and other comprehensive income for Le Max Lid for the year ended 30 June 2019, according to the requirements of IAS 1/AASB 101. B. Prepare a statement of financial position at 30 June 2019 to comply with IAS 1/AASB 101. C. Prepare the Retained Earnings account for the year ended 30 June 2019