Can you please help me to make a statement of financial position, profit and loss statement and statement of equity and help me to understand what goes on in the statements, what needs adjustments, and what goes in the notes? Thanks.

The following details are taken from the trial balance before adjustments as at 30 June 2023:

Sales revenue 29,760,300

Services revenue 18,510,400

Extraordinary Gain 626,000

Proceeds from the sale of land 780,000

Expenses 42,497,600

Equipment (at cost net of depreciation) 3,210,000

Vehicles (at cost net of depreciation) 1,300,100

Buildings (at cost net of depreciation) 6,956,700

Land (at cost) 4,280,500 Accounts receivable 5,420,300

Allowance for doubtful debts 340,000

Inventory (at lower of cost or net realisable value) 2,495,100

Cash at bank 53,400

Prepaid expenses 245,700

Prepaid services revenue 2,975,000

Loan from HW Bank 1,700,000

Provisions 2,210,600

Accounts payable 897,450

Accrued expenses 212,000

Dividend declared and paid 357,000

Share capital 2,649,400

General Reserve 877,600

Retained earnings (1 July 2022) 5,277,650

a) Included in the amount of 'Expenses' in the trial balance provided above are:

Cost of sales $17,930,000.

Salaries and wages $9,214,000.

Annual leave expense of $966, 000.

Long service leave expense of $86,000.

Power and other utility expenses $1,240,000.

Insurance expense $795,600.

Advertising expenses $1,690,000.

Other general operating expenses of $3,112,500.

Depreciation expense for equipment $680,000.

Depreciation expense for vehicles of $380,000.

Depreciation expense for buildings of $695,000.

Warranty expense of $1,240,000.

$487,000 is the cost of land sold in March 2023.

$525,000 payment to auditors ($65,000 of this was for taxation advice and the rest for the audit of the company).

$400 for a subscription to an online TV/sports streaming service for staff break/lounge rooms.

b) The company borrowed $1,700,000 from HW on 1 July 2022. The loan carries 4.5% p.a. On 1 July each year, the company is required to make a payment of interest accrued for the year. On 1 July 2023, the company made a payment, being interest accrued for the year. The company is required to pay the principal amount in full on 1 July 2026.

c) Only one item of land was sold during the period (in March 2023) for $780,000 cash.

d) The extraordinary gain relates to the unexpected receipt of monies. In March 2021, a major customer of the company was declared bankrupt owing the company $1,210,000. It had been expected that no money would be received, and the company had written this bad debt off in June 2021. However, an investigation was undertaken by ASIC and assets have now been recovered from the customer. As a result, in April 2023 the company received $626,000 (no further money is expected to be recovered from this previous customer).

e) The balance of the provisions in the trial balance is comprised of: Legal provision of $650,000 (see (m) below). Provision for annual leave of $234,000. The balance of the provision for annual leave at 30 June 2022 was $108,000. Provision for Long Service leave of $384,000. No long service period was taken during the year ended 30 June 2023 and none is expected to be taken until 2026. Provision for warranties of $942,600. The company previously provided a 12-month warranty on the majority of its products and services. However, as a number of competitors provide longer warranty periods, the company decided to change its warranty conditions. From 1 May 2023, the company provided a 3-year warranty on the majority of its products. This is expected to increase the warranty expense for full financial years in the future by around 18%. It is expected that 80% of the balance of this warranty provision as at 30 June 2023 will be used up by 30 June 2025. The balance of the provision for warranties at 30 June 2022 was $692,000.

f) The prepaid expenses in the trial balance include $65,000 for prepaid insurance, $107,000 for prepaid advertising, and $73,700 for prepaid maintenance (cleaning) services. The accrued expenses relate to utilities (e.g. power).

g) Directors had declared a dividend of $357,000 from retained earnings on 2 July 2022. This required no further approval or authorisation. This dividend was paid on 1 September 2022.

h) At 1 July 2022 the share capital comprised: 2,500,000 fully paid ordinary shares at an issue price of $1.00 issued on 1 July 2016. Share issue costs paid in relation to this issue were $23,000. 50,000 fully paid ordinary shares at an issue price of $1.00. These were bonus shares issued on 1 August 2020. In lieu of an interim dividend, a bonus share issue of 1 fully paid ordinary share (issue price $1.20) for every 25 shares held, was made on 28 January 2023 from the general reserve. Unless otherwise indicated the following events/transactions are not reflected in the trial balance above. You will need to make appropriate adjustments if required.

i) A review by the chief accountant on 6 July 2023 revealed that the interest related to the loan (see (b) above) has not been accounted for at all in the trial balance.

j) On 30 June 2023 the directors decided to transfer $2,000,000 to the general reserve from retained earnings.

k) Directors declared a final dividend (from retained earnings) on 3 July 2023 of 17 cents per share. This requires no further approval and/or authorisation and is expected to be paid in early September 2023.

l) In late April 2023, the company tendered for a contract to provide a range of its products and services to a government department for 3 years. On 4 July 2023, the company was advised that its tender was successful, and it had been awarded the contract, commencing on 1 September The contract is expected to increase revenue by around 20%, although profits are expected to only increase marginally as the company submitted a low bid to increase the chances of obtaining the contract. Further, it is hoped that this may increase the possibility of entering into further contracts with government departments in the future.

m) On 10 July 2023, lawyers provided further information about a claim made against the company in January 2022. This case related to a customer suing the company for damages, claiming to have seriously injured themselves whilst using one of the company's products. The company's lawyers had previously advised that it was extremely likely that the company would be required to pay around $650,000 in damages. However further evidence has indicated that the claim is fraudulent (the customer has in the past tried to sue a number of other companies for the same medical condition) and it is now believed that the company will not be liable for any damages. The matter is expected to be finalised in October 2023.

n) The company tax rate is 30%. Ignore tax-effect accounting. Tax expense should be based on 30% of the accounting profit before tax. No tax expense has yet been recorded.

o) You should assume that the company that is a reporting entity and that the date the annual report (including the financial report) is authorised for issue is 28th August 2023.