The trial balance of Foden company at 30 June 2022 was as shown below.

FODEN

Trial Balance

as at 30 June 2022

	Debit	Credit
Share capital (ordinary shares issued at $2, fully paid)		$200  000
General surplus		25  000
Retained earnings		73  400
Revaluation surplus		85  000
Mortgage loan (secured over land and buildings)		250  000
Bank overdraft (at call)		70  900
7% debentures		80  000
Interest payable		2  800
Accounts payable		69  500
Dividend payable		10  000
Employee benefits payable		34  200
GST payable		18  400
Allowance for doubtful debts		12  800
Accumulated depreciation - plant and equipment		42  500
Accumulated impairment losses - goodwill		10  000
Cash at bank	$500
Accounts receivable	67  800
Inventory	87  700
Prepaid insurance	7  000
Plant and equipment	222  500
Land	220  000
Buildings	380  000
Goodwill	50  000
Government bonds (long-term)	35  000
Shares in Carncotton Ltd	20  000
Sales revenue		825  000
Cost of sales	450  000
General expenses	265  000
Loss on sale of plant	10  000
Interest received		2  500
Dividends received		3  500
	$1  815  500	$1  815  500

Additional information

1. General expenses for the year include the following items.

2. The company tax rate is 30%, to be applied to profit before tax.

3. The opening balance of the allowance for doubtful debts was $15 250.

4. All assets are carried at cost, except for land and buildings, which are carried at fair value.

5. During the year, 50 000 shares were issued at an issue price of $2 each, payable in full on application.

6. On 30 June 2022, the directors revalued land and buildings based on fair values. The carrying amounts of land and buildingsbefore the revaluation were $195 000 and $350 000 respectively.

7. The mortgage loan is repayable in annual instalments of $50 000 starting on 1March.

8. The debentures are to be redeemed on 31 March 2022. There is no plan to refinance these debentures in the future.

9. The employee benefits payable consist of the following.

10. No employee is eligible for long-service leave until 2023.

11. Goodwill is not considered to be impaired.

12. During the year, Foden sold an item of plant for $38 000. The carrying amount of the plant at the date of sale was $48 000.

13. During the year, an interim dividend of $20 000 was paid, and a final dividend of $10 000 was declared. $25 000 was also transferred to the general reserve.

Required: Show all your work and explanations ( be careful with duplicate expenses)

1. Prepare a Statement of Profit or Loss and Other Comprehensive Income for Foden for the year ended 30 June 2022, according to the requirements of IAS 1/AASB 101.

1. Prepare the Retained Earnings account for the year ended 30 June 2022.
    
    

Depreciation plant and equipment Depreciation buildings Employee benefits Bad debts Interest expense Inventory losses Discount allowed Council rates Superannuation contributions $17 200 15 000 11 600 10 000 28 700 6 200 4 200 16 120 7 000