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NewCat Ltd, a manufacturer and retailer for pet products, commenced operations on 1 July, 2018 by issuing 100 000 $2.00 shares, payable in full on application. There were no share issue costs.

For the year ending 30 June 2019, the company recorded the following aggregate transactions:

Accounts	$000
Sales	4 265
Cost of sales	1 800
Other income	723
Administration charges	285
Selling and distribution expenses	130
Employee entitlement expenses (selling)	95
Wages and salaries (selling)	212
Wages and salaries (admin)	210
Doubtful debts expense	120
Depreciation expense -to be calculated
Interest expense	160
Other borrowing expense	20
Income tax expense	120

The following additional information was noted during the preparation of financial statements for the year ended 30 June 2019:

Additional 35 000 $2.00 fully paid shares have been issued and fully paid on 1 March 2019.

A cash dividend of $10 000 (10 cents per share) was declared and paid during the 2019 financial year and a final dividend for 2019 of $15 000 was proposed but not recognised in the financial statements. Inventory was measured at the lower of cost and net realizable value.

Buildings, plant and equipment were measured at cost. The benefits were expected to be received evenly over the useful life of the asset.

Land was revalued upward by $20 000 (assume zero income tax for this transaction). The valuation was conducted by the registered valuer, Valuation Easy Pty Ltd.

Financial assets held for trading are equity investments that are held for the purpose of selling and short-term profit taking.

$200 000 of other loans are repayable within 1 year. The remaining amount is payable in full at the end of 2022.

The provision for employee benefits includes $22 000 payable within 1 year.

The warranty provision is in respect of a 12-month warranty given on certain goods sold.

NewCat Ltd transferred $10 000 out of retained earnings into general reserve.

The bank loan is for 5 years and repayable in full at the end of the term. The interest rate is 9% and it is secured over the land.

NewCat Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and classifies expenses by function within the statement.

The following assets were purchased on 1 July 2018:

Asset	Cost ($)	Useful life (years)
Plant and equipment	890 000	5
Buildings	1 000 000	20

Summarised account balances are provided below:

Year-end balances, 30 June 2019	$000
Cash on hand	20
Cash on deposit, at call	25
Trade debtors	950
Allowance for doubtful debts	120
Other debtors	50
Inventory	985
Financial assets held for trading	100
Land	50
Buildings	1 000
Plant and equipment	890
Patents	55
Amortisation of patent	2
Bank loans	900
Other loans	489
Trade creditors	253
Provision for employee benefits	95
Warranty provision	30
Current tax payable	95
Deferred tax liability	25
Land revaluation reserve	20

Required:

For the year ending 30 June, 2019 (NOTE: comparative financial statements are not required),

1. Using the pro forma table supplied in appendix B, prepare a preliminary trial balance for NewCat Ltd;

2. Prepare a statement of comprehensive income for NewCat Ltd in accordance with the requirements of AASB 101. NewCat Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and classifies expenses by function within the statement;

3. Prepare a statement of changes in equity for NewCat Ltd in accordance with the requirements of AASB 101;

4. Prepare a statement of financial position for NewCat Ltd in accordance with AASB 101. Use the current/non-current presentation format;

5. Prepare appropriate notes to the accounts. (You do not need to prepare notes related to income taxes. Include the following note as note 1. You may optionally add accounting policies to this note):

1. Summary of significant accounting policies

Basis of accounting

The financial report is a general purpose financial report which has been prepared on the historical cost basis, except where stated otherwise.

Statement of Compliance

The financial statements have been prepared in accordance with the requirements of the Corporations Act, Australian Accounting Standards which include Australian equivalents to International Financial Reporting Standards (AIFRSs) and AASB Interpretations. Compliance with AIFRSs ensures the financial statements and notes comply with International Financial Reporting Standards

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