Question 1 - Presentation of Financial Statements (40 marks) The trial balance of Lax Ltd at 30 June 2022 was as shown below. LAX LTD Trial Balance as at 30 June 2022 Share capital (ordinary shares issued at $2, fully paid) General surplus Retained earnings Revaluation surplus Mortgage loan (secured over land and buildings) Bank overdraft (at call) 7% debentures Interest payable Accounts payable Dividend payable Employee benefits payable GST payable Allowance for doubtful debts Accumulated depreciation - plant and equipment Accumulated impairment losses - goodwill Cash at bank Debit Credit $200 000 25 000 73 400 85 000 250 000 70 900 80 000 2 800 69 500 10 000 34 200 18 400 12 800 42 500 10 000 $500 67 800 Accounts receivable Inventory 87 700 Prepaid insurance 7 000 Plant and equipment 222 500 Land 220 000 Buildings 380 000 Goodwill 50 000 Government bonds (long-term) 35 000 Shares in Carncotton Ltd 20 000 Sales revenue Cost of sales General expenses Loss on sale of plant Interest received Dividends received 825 000 450 000 265 000 10 000 2 500 3 500 $1 815 500 $1 815 500