1. The following are the balances on the books of the Harry Kane as at December 31, 2017: Capital Sales 650,000 1,650,000 Bank 53,000 Utilities 40,000 Insurance 33,000 Factory general expenses 40,500 Commission received 30,000 Opening stock of raw materials 45,000 Opening stock of indirect material 25,000 Opening stock of work in progress 23,400 Opening stock of finished goods 60,000 Direct expenses 35,500 Purchases of raw material 661,200 Purchases of indirect material 50,000 Premises at cost 800,000 Machinery and equipment at cost 400,000 Motor vehicle at cost 350,000 Fixtures and fittings 200.000 Provision for depreciation: Machinery and equipment 80,000 Motor vehicle 70,000 Fixtures and fittings 20.000 Return inwards 18.000 Office expense 85,000 Provision for unrealized profits 4.500 Debtors 32.500 Creditors 17000 10% Loan 600.000 Loan interest 17.000 Discount allowed 15.000 Wages 240,000 Return outwards on raw material 16.000 Drawings 22.500 Provision for bad debts 3.100 3,193,600 3,193,600