Trial Balance of Leisure Hotels as at June 30
		Debit	Credit
		$	$
Issued 7% preference share capital $1 each			70,000.00
Issued ordinary share capital $1 each			150,000.00
6% Debentures			250,000.00
Share premium			50,000.00
Buildings at cost		550,000.00
Furniture at cost		70,000.00
Equipment at cot		60,000.00
Opening inventory		10,000.00
Accumulated depreciation
Furniture			25,000.00
Equipment			20,000.00
Director's remuneration		50,000.00
Wages and salaries		252,000.00
Motor expenses		15,000.00
Rates and insurance		12,000.00
Sales			590,000.00
Purchases		158,900.00
General expenses		20,000.00
Advertising		32,000.00
Audit fees		10,000.00
Debenture interest paid		2,100.00
Accounts receivables		13,000.00
Accounts payables			27,000.00
Bank Overdraft			15,000.00
General reserve			30,000.00
Dividend paid		5,000.00
Retained profits as at the beginning of the year			33,000.00
		1,260,000.00	1,260,000.00
Additional Information
1. Inventory counted and valued on 30 June amounted to $8,000.
2. Insurance includes $3,000 of cover that relates to the following year.
3. Wages owing at 30 June amounts to $5,000
4. A provision for bad debts is to be created at a level of 2% of debtors
5. It is the policy of the business to depreciate furniture at 10% per annum using the straight-line
method. Equipment is to be depreciated at 20 per cent.
6. Corporation tax of $3,500 is to be provided for.
7. The directors have proposed the following:
Preference dividends are to be provided for.
$5,000 is to be transferred to a general reserve
6. Transfer of $3,000 to a general reserve account.
8. The authorised share capital of the company is 100,000 preference shares and 250,000 ordinary
shares both having a nominal value of $1.
9. At the year-end the company issued to a private investor 50,000 additional ordinary shares
at a premium of $1.75, the company receiving the money in full. The company used $50,000
from the issue of shares to pay off part of the debenture loan. Neither of these transactions
has been accounted for.
Required
a) Prepare a statement of comprehensive income for the year ended 30 June
b) Prepare a statement of changes in equity for the year ended 30 June
c) Prepare a statement of financial position as at 30 June