Smelly Socks Trading Limited, a company listed on the Nice Clothes Stock Exchange, is a mineral exploration, trading, and investment entity. The company trades exclusively in silver and opal components.

You have just been appointed as the chief financial officer of Smelly Socks Trading Limited and your first task is to prepare the 2028 end of financial year balance sheet for Smelly Socks Trading Limited.

The end of the financial year for the company is March 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	$4,500.00
Goodwill	$75,000.00
Research and Development	$22,500.00
Loss on Sale Equipment	$22,500.00
Retained Earnings	$186,000.00
Short-Term Investments	$23,700.00
Prepaid Expenses	$7,000.00
Wages Expenses	$52,500.00
Other Payables (Due More than 12 Months)	$2,700.00
Long-Term Investments	$67,500.00
Cash and Cash Equivalents	$38,500.00
Loans Due (Less than 12 Months)	$25,000.00
Unearned Revenue	$10,000.00
Inventory	$121,500.00
Property, Plant and Equipment	$337,500.00
Paid-Up Capital	$377,000.00
Interest Revenue	$300,000.00
Accounts Receivables	$102,000.00
General Reserves	$123,000.00
Bonds Payable (11%, $1000, 10 Years)	$157,500.00
Other Expenses	$7,000.00
Long-Term Loans	$262,500.00
Accounts Payable	$37,000.00
Land	$390,000.00
Joint Venture Loss	$4,000.00

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.       One of the company’s banks informed the company that $20,000 of long-term investments initially thought to be received on September 1, 2035, is actually going to be received on June 1, 2028.

2.       The value of inventory as shown in the trial balance figures is based on net realizable value. The accountant in charge of inventory said the historical cost is $115,000.

3.       On December 31, 2024, the CEO informed you that $20,000 of the balance in Retained Earnings are to be reclassified as General Reserves. This adjustment was done at that time.

4.       The company has been told by a consultant that it is expected that the value of the goodwill is $25,000 less than what originally thought. The adjustment not yet made.

5.       During the year, the company purchased long-term investments for $20,000 paying cash. This transaction has already been recorded. No gain or loss was recorded on the transaction.

6.       Amount of $26,000 of long-term loans was wrongly classified. This amount should be for Bonds Payable (11%, $1000, 10 years). This adjustment has yet to be made.

Required:

Using the information supplied, prepare a balance sheet/statement of financial position for Smelly Socks Trading Limited for the end of the 2028 financial year that conforms with IFRS IAS 1 recommendations and requirements of the course.