1. The following Trial Balance was extracted from the books of Red on 31.12.21 Draw up an Income Statement and SOFP taking into account the notes at the foot of the Trial Balance. ivuees. 1. Closing inventory at 31.12.1913,000 2. Depreciation is to be provided on plant and machinery at 10% per year, on a straight line basis 3. Depreciation is to be provided on fixtures at 10% per year, on a straight line basis 4. Depreciation is to be provided on vehicles at 20% per year, on a reducing balance basis 5. Electricity owing amounts to 3,000 6. The amount shown for rent, rates and insurance includes a prepayment of 6,600 7. A specific bad debt of 2,100 is to be written off as irrecoverable. 8. The provision for bad debts is to be adjusted to 2.5% of the adjusted closing receivables (debtors) figure. Required: 1A) From the data provided, you are required to prepare the year-end financial statements, taking into consideration accounting principles, conventions and standards. You will need to make and show appropriate adjustments to both the income statement and the balance sheet. 1B) Provide a template of income statement for sole trader, partnership and not for profit organisation in appendix