1 Given below is the list of initial balances taken from a sole trader's ledger accounts at 30th June 2022. Debit Credit Sales 141,800 Machinery at cost 77,400 Office equipment at cost 5,600 Trade Receivables 19,200 Telephone 900 Trade Payables 6,050 Bank overdraft Purchases 6,800 98,000 Insurance 2,100 Provision for Dep - machinery Provision for Dep- office equipment 36,300 3,300 Stock at 1st July 2021 Loan 8,250 5,000 Wages Loan interest Equity 25,000 300 37,500 236,750 236,750 Page 4 The following information is also available: The value of stock at 30th June 2022 was 9,000 At the beginning of the year, an item of machinery originally purchased for 10,000 with 2 years depreciation, was sold for 5,000 and the adjustment has not been made in the Trial Balance. This adjustment needs to be made before the current years depreciation is calculated. The machinery and office equipment have yet to be depreciated for the year. Machinery is depreciated at 30% on the reducing balance basis and office equipment at 20% of cost. A telephone bill for 200 for the three months to 30th June 2022 did not arrive until after the trial balance had been drawn up. Of the insurance payments 400 is for the year ending 30th September 2022. Required: a) The Income Statement for the year ended 30th June 2022. (16 marks) b) The Statement of Financial Position as at 30th June 2022. (14 marks)