Swansea Ltd prepared the unadjusted trial balance as at 30 June 2019 shown below.

The following information and events are yet to be recorded by the company on 30 June 2019.

1. Inventory on hand after a physical stocktake at 30 June 2019 amounted to $265 000.

2. Prepaid insurance at the end of the year amounted to $3000.

3. Wages accrued and unpaid were $1700.

4. Interest owing and unrecorded on debentures and bank overdraft was $15 000.

5. Depreciation to be recorded on delivery vehicles at the rate of 20% p.a., on buildings at the rate of 5% p.a., and on furniture at the rate of 10% p.a. All these assets have been on hand throughout the year.

6. Interest due on investments amounted to $6000.

7. Sales made on the last day of the financial year but not recorded were for $8000.

8. The directors have decided to transfer $20 000 to the general reserve from retained earnings.

9. Dividends of 5c per share were recommended. An interim dividend of $35 000 had been paid during the year, and this dividend had been debited to the Retained Earnings account.

10. The company issued 30 000 bonus shares valued at $1 each out of the revaluation surplus.

Required

(a) Prepare the adjusting entries necessary.

(b) Prepare a detailed income statement for internal use for Swansea Ltd for the year ended 30 June 2019.

(c) Prepare the statement of changes in equity for Swansea Ltd for the year ended 30 June 2019.

(d) Prepare the balance sheet for Swansea Ltd as at 30 June 2019.

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Account SWANSEA LTD Unadjusted Trial Balance as at 30 June 2019 Share capital (700 000 shares fully paid) General reserve Retained earnings Revaluation surplus Current tax liability Accounts payable Debentures Bank overdraft (current) Other liabilities (current) Land Buildings Accum. depr. buildings Furniture and equipment Accum. depr.- furniture and equipment Debit Credit $ 700 000 200 000 80 000 30 400 20 800 50300 400 000 30 700 30 300 $ 400000 620000 100000 160000 80 000