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In this assignment, you will take on the role of accountant for Platinum Pty Ltd, a private company operating from Melbourne, Australia. Platinum Pty Ltd specialises in the production of specialist components for cars, trucks and other land vehicles. These components are constructed from steel, which Platinum purchases in and then either (a) sells on to end customers (car manufacturers) or (b) uses to construct its components.

The company has been operating successfully to the end of FY 2019. It is now time to prepare the FY 2020 financial statements. You have been provided the information below.

Your task is to prepare the financial statements for FY 2020. Specifically, you are tasked with preparing:

1. A transaction analysis for the FY 2020;

2. A Statement of Profit & Loss for the FY 2020; and

3. A Statement of Financial Position at the end of FY 2020.

To assist you in this task, you have been provided (a) a template used in previous years to record the transactions to the appropriate accounts; and (b), a template for the financial statements to be prepared. These are contained in the Excel file accessible on the LMS in the Assignments module and also attached to this email. You have also been provided with the ending balances from the previous year and a summary of the transactions that have occurred during the year.

FY 2019 Balances

The balances of relevant accounts at the end of FY 2019 are as follows:

Account	Type	Value
Borrowings	Liability	187800
Cash and cash equivalents	Asset	69676
Contributed equity	Equity	21258
Current tax payable	Liability	4736
Inventories	Asset	38164
Investments	Asset	127092
Other current assets	Asset	2573
Other current liabilities	Liability	4599
Property, plant and equipment (Net)	Asset	98043
Retained earnings	Equity	122839
Trade payables	Liability	19011
Trade receivables	Asset	24695

• The opening balance of other current assets is comprised entirely of prepaid insurance.
• The opening balance of other current liabilities is comprised entirely of wages payable.

FY 2020 Transaction data

A summary of the transactions entered into by the company in FY 2020 are as follows:

#	Transaction
1	During the year, Platinum Pty Ltd also purchased $41000 of inventory in cash from its suppliers of higher value add material.
2	During the year Platinum Pty Ltd receives a royalty payment of $70355.
3	By the end of the year, Platinum Pty Ltd pays off $19003 of debts owing to its trade creditors.
4	By the end of the year, Platinum Pty Ltd collects from its debtors a total of $44619.
5	Platinum Pty Ltd has paid all of its company income tax owing from the previous period. In addition, the company incurs a further $30033 in corporate income tax that it will pay next year.
6	During the year, Platinum Pty Ltd incurred $11695 of wages costs. The company has paid this amount in full by the end of the year. In addition, the company also paid all wages owing from previous years.
7	By the end of the year, Platinum Pty Ltd uses up the remainder of its previous insurance contract that was prepaid in the previous year. Halfway into the year, the company signs a new contract for the next twelve months of insurance, paying, $19200 upfront.
8	During the year, Platinum Pty Ltd repays $37560 of its bank debt. The remaining borrowings are to be repaid over the following five years. On the borrowings of Platinum Pty Ltd, during the year the bank charged Platinum Pty Ltd $13146 in interest. This amount was directly charged to the bank account of the company.
9	At the start of the year, Platinum Pty Ltd extended its lease on its premises for 12 months. Each month of rent costs $500, and the company pays its rent on a monthly basis by direct debit to its bank account.
10	During the year, the accountants at Platinum Pty Ltd determine that depreciation should be recorded at $9804. They estimate that 10% of the depreciation is related to selling activities, with the remaining related to administration.
11	During the year Platinum Pty Ltd makes $57000 in sales on credit terms of 30 days. These sales were carried in inventory at a value of $11400.
12	During the year, Platinum Pty Ltd purchased an additional $14000 of computer equipment. Half the amount was paid in cash, with the remaining half on credit. The accountant determines that the credit amount should be allocated to other current liabilities.
13	During the year, Platinum Pty Ltd purchased $41000 of inventory from its suppliers of raw materials. The inventory was purchased on credit.
14	During the year Platinum Pty Ltd issues 32000 shares to a new investors. These shares are issued at an average price of $4 per share.
15	At the end of the year, Platinum Pty Ltd declares and pays a $17267 dividend to its shareholders.
16	During the year Platinum Pty Ltd makes a sale of $55000. Of this amount, 60% was paid in cash with the remainder on credit terms of 60 days. The inventory for this sale was carried at a value of $11000.

• Borrowings are to be repaid equally over the relevant term.

A ISTRIT For the year 2020 Uables Current Investment Trademable pelle Barrowing Other current Taites Other care Contributed Touity Retained in Experts Dvd Trade Revenue Cestingained earning A B C D [Name of Entity] Statement of Profit & Loss For the year ending 30 June, 2020 $ Sales revenue Cost of sales Gross profit 1 Other revenue 2 3 Selling expenses Administrative expenses 5 Finance expenses 5 7 Profit before tax 8 Income tax expense 19 Profit after tax 0 1 B D As at 30 June, 2020 $ 5 6 Current assets 7 Cash and cash equivalents 8 Trade receivables 9 Inventories 10 Other current assets 11 Total current assets 12 13 Non-current assets 14 Property, plant and equipment (Net) 15 Investments 16 Total non-current assets 17 18 Total assets 19 20 Current liabilities 21 Trade payables 22 Current tax payable 23 Borrowings 24 Other current liabilities 25 Total current liabilities 26 27 Non-current liabilities 28 Borrowings 29 Total non-current liabilities 30 31 Total Liabilities 32 33 Net assets 34 35 Equity 36 Contributed equity 37 Retained earnings 38 Total Equity 39 A ISTRIT For the year 2020 Uables Current Investment Trademable pelle Barrowing Other current Taites Other care Contributed Touity Retained in Experts Dvd Trade Revenue Cestingained earning A B C D [Name of Entity] Statement of Profit & Loss For the year ending 30 June, 2020 $ Sales revenue Cost of sales Gross profit 1 Other revenue 2 3 Selling expenses Administrative expenses 5 Finance expenses 5 7 Profit before tax 8 Income tax expense 19 Profit after tax 0 1 B D As at 30 June, 2020 $ 5 6 Current assets 7 Cash and cash equivalents 8 Trade receivables 9 Inventories 10 Other current assets 11 Total current assets 12 13 Non-current assets 14 Property, plant and equipment (Net) 15 Investments 16 Total non-current assets 17 18 Total assets 19 20 Current liabilities 21 Trade payables 22 Current tax payable 23 Borrowings 24 Other current liabilities 25 Total current liabilities 26 27 Non-current liabilities 28 Borrowings 29 Total non-current liabilities 30 31 Total Liabilities 32 33 Net assets 34 35 Equity 36 Contributed equity 37 Retained earnings 38 Total Equity 39

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