1 The Beyblade Enterprise is a sole proprietorship owned by Mr. Aiger Akabane which has been in operation for a year. Mr. Aiger Akabane has kept track of his transactions and wishes to know whether or not he earned a profit. The following is the balance of the accounts as at 31 December 2018. RM Utity expenses Inventories as at 1 January 2018 Stationeries expenses Staff salaries 5,300 26,000 3,000 28,000 Sales salaries 20,000 Sales 420,000 Purchases 380,000 Purchase retur 2,000 Office rental expenses 12,000 Motor vehicles 120,000 Motor expenses 8,400 Land and building 250,000 Interest received Interest on loan 2,000 2,000 Import duty 1,600 General expenses 800 Furniture 25,700 Drawings 1,500 Discount received 3,000 Discount allowed 380 Debtors 28,000 Creditors 35,600 Capital 2 Cash 12,500 Carriage cutwards 500 Bank loan 227,760 Bank 63,880 Bad debts 800 Additional information: 1. Depreciation is to be provided as follows: L Motor vehicles at 10% per annum (straight-line method). IL Furniture at 15% per annum (straight-line method). 2. Interest on the loan was charged at 10% per annum and office rental is RM2,000 per month. 3. Accrued interest received as of the date is RM480. 4. Physical count of the inventories at the end of the period amounts to a value of RM50,000. 5. On 31 December 2018, Mr. Aiger Akabane took out cash for personal use amounting to RM3,000 and there is no record made in any books of accounts. Required: a) Calculate the capital amount. (3 marks) b) Prepare Income Statement for the year ended 31 December 2018. (17 marks) c) Prepare Statement of Financial Position (Balance Sheet) as at 31 December 2018. (20 marks) d) Differentiate the items stated below by providing ONE (1) example for each item to support your answer. (5 marks) L Prepaid expenses and accrued expenses. IL Non-current assets and long-term liabilities