The adjusted trial balance of Snake Ltd as at 30 June 2017 is as follows: Debit Credit $$ Accounts receivable1,350,000 Asset revaluation reserve440,000 Accumulated amortisation - patents & trademarks25,000 Accumulated impairment loss - goodwill180,000 Accumulated depreciation - Plant & machinery206,000 Fixtures & fittings47,000 Buildings40,000 Administrative staff salaries expense540,000 Advertising expense120,000 Bank loan (unsecured - repayable in annual instalments of $40,000)200,000 Carrying amount of plant and machinery sold24,000 Cost of sales3,424,000 Deposits at call120,000 Dividends revenue43,000 Deferred tax asset210,000 Debentures held in Emerald Ltd (mature on 30/6/2018)214,000 Dividends receivable8,000 Freight inwards90,000 Freight outwards115,000 Ordinary shares, fully paid3,654,000 General reserve680,000 Goodwill732,000 Retained profits - 1/7/2016750,000 Mortgage loan (secured over land and buildings - due 30/9/2020) 254,000 Accounts payable472,000 Current tax liabilities156,000 Provision for long service leave (only 40% is currently eligible)250,000 Deferred tax liability175,000 Allowance for doubtful debts77,000 Provision for annual leave62,000 Freehold land (at fair value)1,276,000 Buildings (at fair value)900,000 Listed investments - at fair value100,000 Loan to Charlie Ltd (due on 30/6/2020)220,000 Patents and trademarks125,000 Plant & machinery - at cost684,000 Preference shares, fully paid240,000 Prepayments40,000 Inventories1,950,000 Income tax expense381,000 Final dividend payable200,000 Fixtures & fittings - at cost118,000 Cash at bank530,000 Sales revenue6,600,000 Sundry revenue46,200 Sales returns and allowances12,000 Sales staff salaries and commission expense500,000 7% debentures - due 30/4/2018 (secured over inventories)85,000 Proceeds on sale of plant and machinery40,000 Other administrative expense370,000 Other selling expense210,000 Other expenses (included interest expense of $68,000)190,000 Underwriting commission and other share issue costs47,000 Interest revenue50,000 Interest payable9,000 Transfer to general reserve50,000 Interim dividend paid - ord131,200 Final dividend declared - ord164,000 Final dividend declared - pref36,000- 14,981,20014,981,200 Additional information: i) Included in other administrative expense were: fees paid to auditor (25% for audit & reWhite of financial reports & 75% for non-audit consulting services)$60,000 fees paid to related practice of the auditor (for legal services)$12,000 ii) Inventories, $1,950,000, comprised of: Raw material - at cost$70,000 Work in progress - at cost800,000 Finished goods - at cost1,054,000 Finished goods - at net realisable value26,000 Finished goods are valued at the lower of cost and net realisable value on a weighted average basis. iii) Contributed equity as at 1 July 2016 consisted of: 2,000,000 ordinary shares issued at $1 each, fully paid$ 2,000,000 100,000 15 % preference shares issued at $2.40 each, fully paid240,000 45,000 share options22,500 iv) On 14 July 2016, a rights issue of 1,280,000 ordinary shares were madeat $1.25 each. The underwriting commission and other shares issue costs forthe issue amounted to $15,000. The shares issued ranked equally with existing shares for dividend. v) On 29 May 2017, the 45,000 share options were exercised and 45,000 ordinary shares were allotted at an exercise price of 70 cents each. The allotted shares did not rank for dividend until 2018. vi) On 17 June 2017, freehold land was revalued to its fair value of $1,276,000 from its carrying amount of $1,076,000. The related deferred tax has been accounted. vii) On 28 June 2017, Snake entered into a contract with Magnet Ltd for the construction of three new machines at a cost of $245,000 each. The company expects to take delivery of the first machine in January 2018, and the rest in February 2016. viii) On 30 June 2017, listed investments were revalued to their fair value. They were purchased at a cost of $60,000 in May 2016 and are classified as investments in equity instruments. The related deferred tax liability had been accounted. Note: Loan receivables and held-to-maturity investments (such as debentures held in another entity) are to be classified as other financial assets. ix) An amount of $50,000 was transferred to general reserve from retained earnings. x) Accounting policies adopted are consistent with those of the previous year. xi) Tax rate is 30% Required 1. Prepare a statement of profit or loss and other comprehensive income for Snake Ltd for the year ended 30 June 2017 according to the requirements of AASB 101 (classify expenses by functions). Show all workings. (Note: You will get zero mark if you prepare an internal statement - see demonstration problems 1 & 2 on pages 648 - 658.) 2. Prepare a statement of financial position for Snake Ltd at 30 June 2017 to comply with AASB 101. Use the current and non-current presentation format. Show all workings. (Note: You will get zero mark if you prepare an internal statement - see demonstration problems 1 & 2 on pages 648 - 658.) 3. Prepare a statement of changes in equity for Snake Ltd for the year ended 30 June 2017 according to the requirements of AASB 101. Show the dividends per share on the statement. Show all workings. 4. Prepare appropriate notes to the following items: 1) Summary of significant accounting policies - an extract of the basis of accounting and inventories; 2) Inventories; 3) Long-term borrowings; 4) Auditor's remuneration; 5) Commitments.