Sydney Ltd, commenced retail operations on 1 July 2019 by issuing 1,000,000 shares at @ $1.00 per share, payable in full on application. Company sales designer's leather bags to customers. There were no share issue costs. For the year ending 30 June 2021, the company recorded the following balances:

Sales revenue $1,350,000 (Sales price: $1,500 each bag) Gain from trading securities $20,000 Cost of sales: need to be calculated (Cost: $1,000 each bag) Wages and salaries (administrative) $80,000

Wages and salaries (selling) $100,000 Office Rent $20,000 Advertising and distribution expense $10,000 Utility bills $4,000 Sales commission expense (sales employee) $28,000 Bad debt expense $8,000 Depreciation expense Furniture? (need to be calculated) Depreciation expense Building? (need to be calculated) Interest expense $40,000 Bank charge $10,000 Income tax expense $46,000

Summarised account balances for the equity section at the end of the prior financial year (i.e., 2020) are provided below:

Year-end balances, 30 June 2020	$
Share Capital, 30 June 2020	1,000,000
Retained earnings, 30 June 2020	95,000

In the current year:

• Additional shares were issued and fully paid on the following dates during the 2021 financial year:

1 Jan 2021: 40 000 ordinary shares issued/fully paid @ $2.50

1 April 2021: 60 000 ordinary shares issued/fully paid @ $3.00

• A cash dividend of $22 000 was declared and paid during the 2021 financial year:

Balance of other relevant accounts of the Sydney Ltd For the year ending 30 June 2021 are provided below:

Accounts	$
Cash on hand	75,000
Cash on deposit, at call	60,000
Trade debtors	1,620,000
Allowance for doubtful debts	40 ,000
Other debtors	850,000
Inventory	200,000
Trading securities	25,000
Land	125,000
Buildings	500,000
Accumulated depreciation buildings*	?
Furniture	200,000
Accumulated depreciation Furniture *	?
Patents	180,000
Amortisation of patent	55,000
Bank loans	553,000
Other loans	300,000
Trade creditors	1,200,000
Provision for employee benefits	50,000
Warranty provision	45,000
Current tax payable	40,000
Deferred tax liability	35,000

The following additional information was noted during the preparation of financial statements for the year ended 30 June 2021:

• Inventory was measured at the lower of cost and net realisable value as per AASB102.
• *Depreciation and accumulated depreciation for buildings and furniture need to be calculated.
• Trading securities are equity investments that are held for the purpose of selling and short-term profit taking.
• $20 000 of bank loans are repayable within 1 year. The remaining amount is payable in full at the end of 2030. The loans are secured over the land.
• $150 000 of other loans are repayable within 1 year. The remaining amount is payable in full at the end of 2024.
• The provision for employee benefits includes $20 000 payable within 1 year.
• The warranty provision is in respect of a 12-month warranty given on certain goods sold.
• Buildings and furniture were measured at cost. The benefits were expected to be received evenly over the useful life of the asset. The residual values are negligible. Building was acquired on 1 July 2019 for $500,000 (cost) and estimated useful life is 20 years. Furniture was acquired on 1 January 2020 for $200,000 (cost) and estimated useful life is 10 years.
• Land was revalued upward by $5 000 to $125 000 (assume zero income tax for this transaction). There had been no previously recognised reserve for revaluation surplus. The valuation was conducted by the registered valuer, The Valuable Pty Ltd.
• Sydney Ltd transferred $10,000 out of retained earnings into general reserve.

Sydney Ltd - Trial Balance as at 30 June 2021	DR ($'000)	CR ($'000)
Sales of goods
Gain from trading securities
Cost of sales*
Office Rent
Advertising and distribution expense
Sales commission expense - (selling)
Utility bills
Wages and salaries (selling)
Wages and salaries- (administrative)
Bad debts expense
Depreciation expense - buildings
Depreciation expense - Furniture
Interest expense
Bank charges
Income tax expense
Cash on hand
Cash on deposit, at call
Trade debtors
Allowance for doubtful debts
Other debtors
Inventory
Trading securities
Land
Buildings
Accumulated depreciation buildings
Furniture
Accumulated depreciation Furniture
Patents
Amortisation of patents
Bank loans
Other loans
Trade creditors
Provision for employee benefits
Warranty provision
Current tax payable
Deferred tax liability
Share Capital
Dividends paid
Retained earnings, transfer to general reserve
General reserve
Land revaluation surplus
Retained earnings, 30 June 2020
Total

Required:

For the year ending 30 June 2021 (NOTE: comparative financial statements are not required),

1. Using the pro forma table supplied, prepare a preliminary trial balance for Sydney Ltd;

2. Prepare a statement of comprehensive income for Sydney Ltd in accordance with the requirements of AASB 101. Sydney Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and classifies expenses by function within the statement;

3. Prepare a statement of changes in equity for Sydney Ltd in accordance with the requirements of AASB 101;