The Trial Balance of Metal Ltd. as of 30 June 2022 disclosed:

Share capital ($1 shares fully paid)			5,000,000
Asset Revaluation Reserve (Balance 1 July 2021)			450,000
General Reserve			50,000
Retained Earnings 30/06/2022	200,000
9% Debentures repayable 01/01/2022			800,000
10% Mortgage (repayable $50,000 per annum)			200,000
Trade Payables			250,000
Accruals			30,000
Provision - Long Service Leave			20,000
Current Tax Payable			120,000
Allowance for Doubtful Debts			90,000
Inventories	90,000
Land & Buildings (at cost)	4,000,000
Accumulated Depreciation - Buildings			500,000
Machinery (at cost)	700,000
Accumulated Depreciation - Machinery			160,000
Goodwill (at cost less impairment)	50,000
Shares in listed companies (at cost)	2,000,000
Trade Receivables	690,000
Bank Overdraft (secured on Land and Buildings)			70,000
Prepayments	10,000
TOTAL	7,740,000		7,740,000

The directors for Metal Ltd. have set several organisational policies on accounting matters and have provided you with the following additional information:

• The 9% debentures are secured by a floating charge over the company's assets.
• The 10% Mortgage is secured by a charge over the land and buildings.
• Employees' entitlement for long service leave payment by 31 July 2022 is $8,000. The balance is not due for payment until after that date.
• Inventories are raw materials recorded at cost.
• Goodwill at cost was $150,000.
• Shares in listed companies had a market price of $2,800,000.
• The Land and Buildings were re-valued in accordance with an independent valuation on 30 June 2022 by a member of the Australian Institute of Valuers.
• Market value Land and Buildings $5,000,000.
• Net loss after tax $80,000 is included in the above retained earnings.
• No new shares were issued during the year.
• Retained Earnings balance 1 July 2021, $120,000 loss.
• General Reserve balance 1 July 2021, $50,000.
• Asset Revaluation Reserve 1 July 2021, $450,000
• All reports are to be prepared using Microsoft Excel.

1.  Prepare the following:
   • Statement of Financial Position
   • Statement of Changes in Equity and
   • Appropriate notes to the financial statements as at 30 June 2022.

Metal Limited Statement of Financial Position
for the year ended 30 June 2022
		Notes	$	$
ASSETS
Current asset
	Trade and other receivables	7
	Inventories	8
	Other current assets	9
Total current assets
Non-current assets
	Available for sale investments	10
	Property plant and equipment	11
	Goodwill	12
Total non-current assets
Total assets
LIABILITIES
Current liabilities
	Trade and other payables	13
	Short-term borrowings	14
	Current portion of long-term borrowings	15
	Current tax payable	16
	Short-term provisions	17
Total current liabilities
Non-Current liabilities
	Long-term borrowings	18
	Long-term provisions	19
	Deferred tax liability	20
Total non-current liabilities
Total liabilities
NET ASSETS
EQUITY
Share capital	21
Reserves	22
Retained earnings
Total Equity

Metal Limited Notes to Financial Statements
for the year ended 30 June 2022
			$	$
7. Trade and other receivables
Trade receivables
Allowance for doubtful debts
8. Inventories
Raw materials at lower of cost or net realisable value
(replacement cost $95,000)
9. Other current assets
Prepayments
10. Available for sale investments
Shares in listed companies - at market value (cost $2m)
11. Property plant and equipment
Land and buildings at independent
	valuation 30/06/20 (Cost $4,000,000)
Machinery at cost
	Accumulated depreciation - machinery
12. Goodwill
Goodwill at cost
Accumulated impairment
13. Trade and other payables
Trade payables
Other payables - accruals
14. Short-term borrowings
Bank overdraft (secured on Land and Buildings)
15. Current portion of long-term borrowings
9% debentures repayable 01/01/2022 (secured on co assets)
10% mortgage (repayable $50,000 per annum, secured on land & buildings)
16. Current Tax payable
Current Tax payable
17. Short-term provisions
Provision for long service leave
18. Long-term borrowings
10% mortgage (repayable $50,000 per annum, secured on land & buildings)
19. Long-term provisions
Provision for long service leave
20. Deferred Tax Liability
Revaluation of land & buildings (1,500,000 x 30%)
Revaluation of shares (800,000 x 30%) 240,000
21. Share capital
Opening Balance - 5,000,000 $1 shares fully paid
Closing Balance - 5,000,000 $1 shares fully paid
22. Reserves
Asset Revaluation reserve
General reserve
Movements in reserves:
Asset revaluation reserve
	Opening balance
	Land and buildings revaluation
	Revaluation of Shares
	Tax effect on revaluation (2,300,000 x 30%)
	Closing balance

Statement of Changes in Equity
for the year ended 30 June 2022
	Share	General	Revaluation	Retained	Total
	capital	reserve	reserve	earnings	Equity
Balance 1 July 2021
Comprehensive income for period
Transfers to/from reserves
Transactions with owners:
Dividends paid/declared
Issue of share capital
Total transactions with owners
Balance 30 June 2022