SOlution provided is still incorrect example proceeds from issuance of shares cannot be $400000.$ Please provide the correct solution and the existing is still missing detailed calculations and not all parts of the questions has been answered. I am writing to seek your advice regarding numerous accounting issues for the year ended $30$ June $2024.$ Our senior accountant is on indefinite sick leave and we require your services. I have included following items that we require for your completion. All work must comply with the Australian Accounting Standards and please also provide a detailed explanation of the rationale behind the appropriate accounting treatments.

The items of concern are as follows:

Item $1$

The following information is financial statements of High Ltd for the year ended $30$ June $2024.$

Income statement of High Ltd for the year ended $30$ June $2024$

$\backslash$table$[[,$$$^(\text{'})000,$$$^(\text{'})000],[$Sales$,,927],[$Interest revenue,,$11],[$Dividend revenue,,$5],[$Total Income,,$943],[$Less Expenses,$320,],[$Cost of Sales,$15,],[$Other expenses $($paid$),7,],[$Bad debts expenses,$266,],[$Wages expense,$14,],[$Interest expense,$95,],[$Depreciation $-$ plant,$10,(727)],[$Loss of sale of plant,,$216],[$Profit before income tax,,$(74)],[$Less income tax expenses,,$142],[$Profit for the year,,$]]$ Statement of financial position of High Ltd as at $30$ June $2023$ and $2024$

Other information

For the purposes of the statement of cash flows, High Ltd defines cash and cash equivalents as

including cash on hand and at bank and short$-$term deposits at call, net of outstanding bank

overdrafts.

During the reporting period, High Ltd made two issues of ordinary shares as follows:

the convertible notes outstanding at $30$ June $2024$ were converted to $150000$ ordinary

shares issued at a conversion price of $$2\mathrm{.}00$ per share; and

$200000$ shares were issued at $$2\mathrm{.}00$ per share for cash.

During the year ended $30$ June $2024,$ plant and equipment costing $$60000$ and having a book

value of $$30000$ was sold and made a loss of $$10000.$

The opening and closing balances of the "accruals" accounts $($under current liabilities$)$ were

attributable to wages and salaries and interest payable as follows: The company had access to bank overdraft facilities of up to a maximum of $$100000.$ The

bank overdrafts were payable on demand and were subject to annual review.

The accounting policy of High Ltd was to disclose interest received and dividends received as

investing activities.

Please prepare a statement of cash flows for High Ltd using the direct method. Additionally,

include the note sections for cash and cash equivalents and provide a reconciliation of profit for

the period to net cash flows from operating activities.

Item $2$

Please provide some recommendation on the following issues with appropriate accounting

treatments as per the Australian Accounting Standard.

As at the beginning of the current financial year $2024,$ High Ltd has two provision accounts:

$($a$)$ Provision for lawsuit claims $$14m,$ and

$($b$)$ Provision for warranty $$29m.$

During the year ended $30$ June $2024,$ the lawsuit claims were settled at $$16m$ and warranty

costs of $$32m$ were paid. We would like to increase the warranty provision to $$39m$ at year

end in tandem with the increase in products sold during the year.

Please provide journal entries $($if any$)$ that we should make for $30$ June $2024$ to prepare our

annual report. Please show all workings $($settlement of the lawsuit claims and increase of

warranty provision$).$

High Ltd is the primary contractor responsible for constructing a power plant for Thai Lid. It has

been discovered that there are defects in the construction of the power plant. The estimated

cost to fix these defects is $$100m.$ It had previously recognised a provision for warranty of

$$40m$ on the project as part of project costs. However, High Ltd believes it can recover a

substantial part of the costs from the subcontractors who performed some of the construction

works. Negotiations with these subcontractors are ongoing, and so far, only two subcontractors

have accepted liability. The amount of reimbursement that is considered virtually certain is

estimated to be $$10m.$ Can you explain with journal entries how High Ltd shall account for the above estimates of

costs and reimbursements? What would be criteria for recording such liabilities?

The ice cream factory located in Thailand has been incurring losses for the past $3$ years.

Management is contemplating the option of either restructuring the plant or selling it to an

external party. Management believes that losses will continue for another $2$ years at about