Required

a)Prepare a statement of profit or loss and other comprehensive income for Sunny Ltd for the year ended 30 June 2017 according to the requirements of AASB 101 (classify expenses by functions). Show all workings.

b)Prepare a statement of financial position for Sunny Ltd at 30 June 2017 to comply with AASB 101. Use the current and non-current presentation format. Show all workings.

c)Prepare a statement of changes in equity for Sunny Ltd for the year ended 30 June 2017 according to the requirements of AASB 101. Show the dividends per share on the statement. Show all workings.

d)Prepare appropriate notes to the following items:

1)summary of significant accounting policies :

statement of compliance;

an extract of the basis of accounting and inventories;

2)inventories;

3)long-term borrowings;

4)auditors remuneration;

The adjusted trial balance of Sunny Ltd as at 30 June 2017 is as follows: Debit Sunny Ltd $ Accounts receivable 1,350,000 Asset revaluation reserve as at 1/7/2016 Asset revaluation reserve (On 17 June 2017, freehold land was revalued to its fair value of $1,276,000 from its carrying amount of $1,076,000. The related deferred tax has been accounted.) Accumulated amortisation - patents & trademarks Accumulated impairment loss - goodwill Accumulated depreciation Plant & machinery Fixtures & fittings Buildings Administrative staff salaries expense Advertising expense Bank loan (unsecured -short-term repayable due) Bank loan (unsecured -long-term repayable amount) Carrying amount of plant and machinery sold Cost of sales Deposits at call Dividends revenue Deferred tax asset Debentures held in Emerald Ltd (mature on 30/5/2018) Dividends receivable Freight inwards Freight outwards Ordinary shares, fully paid General reserve Goodwill Retained profits as at 1/7/2016 Mortgage loan (secured over land and buildings - due 30/9/2020) Accounts payable Current tax liabilities Provision for long service leave -short term liable Provision for long service leave - long term liable Deferred tax liability Allowance for doubtful debts Provision for annual leave Freehold land (at fair value) Buildings (at fair value) Long term investment in listed shares as at 1/7/2016 Long term investment in listed shares (revaluation increment on 30/06/2017) Loan to Charlie Ltd (due on 30/6/2020) Credit $ 240,000 200,000 25,000 180,000 206,000 47,000 40,000 540,000 120,000 40,000 160,000 24,000 3,424,000 120,000 43,000 210,000 214,000 8,000 90,000 115,000 3,654,000 680,000 732,000 750,000 254,000 472,000 156,000 100,000 150,000 175,000 77,000 62,000 1,276,000 900,000 60,000 40,000 220,000 Patents and trademarks Plant & machinery - at cost Preference shares, fully paid Prepayments Inventories Income tax expense Final dividend payable Fixtures & fittings - at cost Cash at bank Sales revenue Sundry revenue Sales returns and allowances Sales staff salaries and commission expense 7% debentures - due 30/4/2018 (secured over inventories) Proceeds on sale of plant and machinery Other administrative expense Other selling expense Interest expense Other expenses Underwriting commission and other share issue costs Interest revenue Interest payable Transfer to general reserve Interim dividend paid - ord Final dividend declared - ord Final dividend declared - pref Total 125,000 684,000 240,000 40,000 1,950,000 381,000 200,000 118,000 530,000 6,600,000 46,200 12,000 500,000 85,000 40,000 370,000 210,000 68,000 122,000 47,000 50,000 9,000 50,000 131,200 164,000 36,000 14,981,20 0 14,981,20 0 Additional information: i) Included in other administrative expense were: fees paid to auditor: 25% for audit & review of financial reports 75% for non-audit consulting services) $60,000 ii) fees paid to related practice of the auditor (for legal services) $12,000 Inventories, $1,950,000, comprised of: Raw material - at cost Work in progress - at cost Finished goods - at cost Finished goods - at net realisable value $70,000 800,000 1,054,000 26,000 Finished goods are valued at the lower of cost and net realisable value on a weighted average basis. iii) Contributed equity as at 1 July 2016 consisted of: 2,000,000 ordinary shares issued at $1 each, fully paid 100,000 15 % preference shares issued at $2.40 each, fully paid 45,000 share options $ 2,000,000 240,000 22,500 iv) On 14 July 2016, a rights issue of 1,280,000 ordinary shares were made at $1.25 each. The underwriting commission and other shares issue costs for the issue amounted to $15,000. The shares issued ranked equally with existing shares for dividend. v) On 29 May 2017, the 45,000 share options were exercised and 45,000 ordinary shares were allotted at an exercise price of 70 cents each. The allotted shares did not rank for dividend until 2018. vi) On 17 June 2017, freehold land was revalued to its fair value of $1,276,000 from its carrying amount of $1,076,000. The related deferred tax has been accounted. vii) On 28 June 2017, Sunny entered into a contract with Magnet Ltd for the construction of three new machines at a cost of $245,000 each. The company expects to take delivery of the first machine in January 2018, and the rest in February 2019. viii) On 30 June 2017, listed investments were revalued to their fair value. They were purchased at a cost of $60,000 in May 2016 and are classified as long-term investments in equity instruments. The related deferred tax liability had been accounted. Note: Loan receivables and held-to-maturity investments (such as debentures held in another entity) are to be classified as other financial assets. ix) An amount of $50,000 was transferred to general reserve from retained earnings. x) Accounting policies adopted are consistent with those of the previous year. xi) Tax rate is 30% Required a) Prepare a statement of profit or loss and other comprehensive income for Sunny Ltd for the year ended 30 June 2017 according to the requirements of AASB 101 (classify expenses by functions). Show all workings. b) Prepare a statement of financial position for Sunny Ltd at 30 June 2017 to comply with AASB 101. Use the current and non-current presentation format. Show all workings. c) Prepare a statement of changes in equity for Sunny Ltd for the year ended 30 June 2017 according to the requirements of AASB 101. Show the dividends per share on the statement. Show all workings. d) Prepare appropriate notes to the following items: 1) 2) 3) 4) summary of significant accounting policies - statement of compliance; an extract of the basis of accounting and inventories; inventories; long-term borrowings; auditor's remuneration