Question: ly save as you proceed through the test. QUESTION 1: Events after the reporting period (5 MARKS) X The following information has been made available

ly save as you proceed through the test. QUESTION 1: Events after the reporting period (5 MARKS) X The following information has been made available to you to assist in the preparation of the financial statements of ABC Ltd for the year ended 30 June 2022. On 25 August 2022, the company received notification that a customer owing $300 000 had gone into liquidation. The liquidator advised that unsecured creditors are likely to receive a distribution of only 20c in the dollar. The liquidation was caused by a flood in July 2022 which destroyed the customer's operating plant and warehouse. The damage was not covered by in- surance. ABC Ltd's draft profit for the year ended 30 June 2022 is $800 000. On 30 Sep. 2022, the director of ABC Ltd. signed off the declaration, the date on which financial statements are authorised for issue. Question 2 Required 1.Classify the above event as either adjusting or non-adjusting events after the end of the reporting period. (1 marks) 2. Based on your answer to requirement 1, prepare the necessary journal entries or note disclosures to comply with the requirements of AASB 110. (4 marks) B I X X 23 > 66 x H = AY

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