1 The following information is the preliminary trial balance of King's Construction Company Ltd for year ending of 31st of December 2021: Debits () Credits () Sales Revenue Short-Term Marketable Securities 230,000,000 14,500,000 Property 52,000,000 Building Machinery Historic Cost 25,000,000 Building Machinery - Accumulated Depreciation 5,000,000 Inventories (at the 1st of January 2021) 18,000,000 Purchases 80,000,000 Lease Liabilities (due in more than one year) 6,500,000 Land 12,000,000 Staff Wages 42,000,000 Accrued Staff Wages 2,000,000 Office Equipment Historic Cost 16,500,000 Office Equipment - Accumulated Depreciation 10,000,000 Bank Interest Expense 4,000,000 Construction Vehicles - Historic Cost 10,000,000 Construction Vehicles - Accumulated Depreciation 2,000,000 Trade Receivable 28,200,000 Goodwill 44,000,000 Trade Payable 4,000,000 Bank Loan 40,000,000 Share Premium 30,000,000 Rental Income (from non-core operations) 7,000,000 Asset Revaluation 2,000,000 Lease Expense (on retail shops) 3,500,000 Lease Liabilities (due in less than one year) 1,200,000 Share Capital (100) 50,000,000 Retained Earnings 45,000,000 Administrative Expense 45,000,000 Pension Liability Cash and Cash Equivalents 15,000,000 55,000,000 449,700,000 449,700,000 Adjustments 1) Closing inventories was 12,000,000 on the 31st of December 2021. 2) Corporation tax is 20% for the year, half due now and should be paid in cash and half due in April 2022. 3) Land was revalued from 12,000,000 to 15,000,000. 4) 5) A court case is currently going through the courts in which King's Construction Company Ltd is being sued by an employee due to an injury at work in 2021, in which the solicitors estimate they will have to payout 1,000,000 and that it is probable it will lose the court case. A court case is currently going through the courts in which King's Construction Company Ltd is suing its biggest competitor for 4,000,000 due to copyright infringement, which the outcome of winning the court case is considered probable. 6) Depreciation (all based on reducing balance): a) Office Equipment - 20% b) Building Machinery - 15% c) Construction Vehicles -10% 7) 6,000,000 of the trade receivable figure is considered unrecoverable and should be written-off as bad debts. 8) 5,000,000 of administrative expenses included in the trial balance is actually a prepayment for 2022 financial year. 9) Dividends were distributed to shareholders during the financial year to a value of 4,000,000 in cash. 10) A 1 for 2 bonus issue was given to shareholders. The bonus issue was conducted before the rights issue. The bonus issue should be made using a revenue reserve. 11) A rights issue of 3 for 2 basis, at 500 per share, with 75% of shares bought by shareholders, conducted after the bonus issue. REQUIRED Please prepare a balance sheet and income statement for 31st December 2021 using the trial balance presented on the previous page, ensuring that you make all the requested adjustments. Please also ensure to add notes of any contingent assets and/or contingent liabilities if you consider such an event to have arisen