Question 2

The following trial balance of Matisse Ltd as at 30 June 2012, extracted from the company's MYOB accounting software, disclosed:

Matisse

Ltd Trial Balance at 30 June 2012

Additional information:

1. Investments include shares in companies listed on the Australian Stock Exchange ($191,000) and debentures available for trading ($268,000).

2. The mortgage, secured by land & buildings, is due to be repaid in six equal installments, due on 1 July each year, commencing on 1 July 2016.

3. Land was re-valued by the directors on 30 June 2016 to $2,420,000.

4. Buildings were re-valued by the directors on 30 June 2016 to $1,150,000.

5. Long service leave payable within the next twelve months is $12,000.

6. The company is currently involved in a lawsuit where damages amounting to $500,000 are being claimed against the company. The company's legal advisers believe that there is a 30% chance that the company may lose this case.

Required:

(i) Prepare the Statement of financial position for Matisse Ltd as at 30 June 2016.

(ii) Prepare the notes to the Statement of financial position (balance sheet) showing all the required disclosures as per AASB 101 for all items listed above.