The directors of Lion Holdings Ltd have approached your accounting firm for assistance in the aftermath of a disastrous office fire which had destroyed most of their accounting records. Adding to the problem was their tardiness in submitting annual returns to ASIC subsequent to the financial year ending 30 June 2018. Your firm is tasked with reconstructing the 2019 financial statements from the meagre information that had been salvaged and the personal memory of the directors. Other firms will be dealing with financial years 2020 and 2021. One page of information that had survived was the summarised general ledger trial balance for the year ended 30 June 2019 and is detailed below: Sales of goods Interest income Cost of sales Distribution expenses Sales and marketing expenses Administration expenses Interest expense Other borrowing expenses Income tax expense Cash on hand Cash on deposit, at call Trade debtors Allowance for doubtful debts Other debtors Raw materials inventories Finished goods inventories Financial assets recognised at fair value through other comprehensive income Land and buildings Accumulated depreciation - buildings Plant and equipment Accumulated depreciation - plant and equipment Patents Amortisation of patent Goodwill Bank loans Other loans Trade creditors Provision for employee benefits Warranty provision Current tax payable Deferred tax liability Retained earnings, 30 June 2018 Dividends paid Land revaluation surplus Financial assets revaluation surplus Share capital Dr CI $4 469000 6000 $2987000 86000 820000 252 000 44000 4000 85000 4000 100 000 450 000 14000 93000 188000 714000 225000 257000 36000 1 260 000 584 000 48000 3000 870000 66000 570 000 510000 93000 37 000 25000 135 000 326 000 150 000 50 000 42 000 1 691 000 S8637000 $8637 000 Other information available to you includes: There was a share issue during 2019 for $220 000. Share capital as at 30 June 2018 (from ASIC records) was $1 441 000. Of the $150 000 dividend paid, $30 000 was reinvested as part of a dividend reinvestment plan All shares are valued at $5 per share. The balances of the land revaluation surplus and the financial assets revaluation surplus at 30 June 2018 were $15 000 credit and $35 000 credit respectively. Both the land revaluation surplus and financial assets revaluation surplus will not be reclassified subsequently to profit or loss. The following revaluations were recognised during the year ended 30 June 2019: land revalued upward by S50 000 (related income tax $15 000) and financial assets revalued upward by $10 000 (related income tax $3000). Land was revalued by registered valuers, E.H Holden & Assoc. The financial assets are held as part of a long-term investment strategy. $36 000 of bank loans is repayable within 1 year. $310 000 of other loans is repayable within 1 year. The provision for employee benefits includes $62 000 payable within 1 year. The warranty provision is in respect of a 12-month warranty given on certain goods sold. Lion Holdings 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. Required: For the year ended 30 June 2019. 1. Prepare a statement of comprehensive income for Lion Holdings Ltd in accordance with the requirements of AASB 101 (classify expenses by function) (see AASB101 paras 97. 105). 2. Prepare a statement of financial position for Lion Holdings Ltd in accordance with AASB 101. Use the currenton-current presentation format and supply a "net assets" line item. 3. Prepare a statement of changes in equity for Lion Holdings Ltd in accordance with the requirements of AASB 101. 4. Prepare notes to the accounts for each expense line item that comprises an aggregation. Start your numbering from note 2. You may ignore the accounting policy note. 5. Prepare notes for receivables, inventories, intangibles and property plant and equipment. 6. Prepare notes for borrowings, share capital and reserves. 7. Earnings per share and dividends per share disclosure required. (Ask your teacher for details). The directors of Lion Holdings Ltd have approached your accounting firm for assistance in the aftermath of a disastrous office fire which had destroyed most of their accounting records. Adding to the problem was their tardiness in submitting annual returns to ASIC subsequent to the financial year ending 30 June 2018. Your firm is tasked with reconstructing the 2019 financial statements from the meagre information that had been salvaged and the personal memory of the directors. Other firms will be dealing with financial years 2020 and 2021. One page of information that had survived was the summarised general ledger trial balance for the year ended 30 June 2019 and is detailed below: Sales of goods Interest income Cost of sales Distribution expenses Sales and marketing expenses Administration expenses Interest expense Other borrowing expenses Income tax expense Cash on hand Cash on deposit, at call Trade debtors Allowance for doubtful debts Other debtors Raw materials inventories Finished goods inventories Financial assets recognised at fair value through other comprehensive income Land and buildings Accumulated depreciation - buildings Plant and equipment Accumulated depreciation - plant and equipment Patents Amortisation of patent Goodwill Bank loans Other loans Trade creditors Provision for employee benefits Warranty provision Current tax payable Deferred tax liability Retained earnings, 30 June 2018 Dividends paid Land revaluation surplus Financial assets revaluation surplus Share capital Dr CI $4 469000 6000 $2987000 86000 820000 252 000 44000 4000 85000 4000 100 000 450 000 14000 93000 188000 714000 225000 257000 36000 1 260 000 584 000 48000 3000 870000 66000 570 000 510000 93000 37 000 25000 135 000 326 000 150 000 50 000 42 000 1 691 000 S8637000 $8637 000 Other information available to you includes: There was a share issue during 2019 for $220 000. Share capital as at 30 June 2018 (from ASIC records) was $1 441 000. Of the $150 000 dividend paid, $30 000 was reinvested as part of a dividend reinvestment plan All shares are valued at $5 per share. The balances of the land revaluation surplus and the financial assets revaluation surplus at 30 June 2018 were $15 000 credit and $35 000 credit respectively. Both the land revaluation surplus and financial assets revaluation surplus will not be reclassified subsequently to profit or loss. The following revaluations were recognised during the year ended 30 June 2019: land revalued upward by S50 000 (related income tax $15 000) and financial assets revalued upward by $10 000 (related income tax $3000). Land was revalued by registered valuers, E.H Holden & Assoc. The financial assets are held as part of a long-term investment strategy. $36 000 of bank loans is repayable within 1 year. $310 000 of other loans is repayable within 1 year. The provision for employee benefits includes $62 000 payable within 1 year. The warranty provision is in respect of a 12-month warranty given on certain goods sold. Lion Holdings 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. Required: For the year ended 30 June 2019. 1. Prepare a statement of comprehensive income for Lion Holdings Ltd in accordance with the requirements of AASB 101 (classify expenses by function) (see AASB101 paras 97. 105). 2. Prepare a statement of financial position for Lion Holdings Ltd in accordance with AASB 101. Use the currenton-current presentation format and supply a "net assets" line item. 3. Prepare a statement of changes in equity for Lion Holdings Ltd in accordance with the requirements of AASB 101. 4. Prepare notes to the accounts for each expense line item that comprises an aggregation. Start your numbering from note 2. You may ignore the accounting policy note. 5. Prepare notes for receivables, inventories, intangibles and property plant and equipment. 6. Prepare notes for borrowings, share capital and reserves. 7. Earnings per share and dividends per share disclosure required. (Ask your teacher for details)