8. The following balances were obtained from the books of KLM plc as at December 31, 2018: $ $ 35,000 450,000 100,000 450,000 150,000 35,500 220,000 72,160 81,200 50,000 140,000 General reserves Ordinary shares @ $1 5% Preference shares @ $0.50 Premises 5% Debenture Retained earnings Goodwill Debtors Creditors Management expenses Motor vehicles Provision for depn on vehicle Sales Cost of sales Fixtures & fittings Provision for depn on fix & fit Stock at Dec 31, 2018 Insurance Directors' fees Debenture interest Interim ord. shares dividends Cash & bank Wages & salaries 28,000 1,800,000 1,050,000 60,000 12,000 250,100 15,000 20,000 7,000 12,000 255,440 90,000 2,691,700 2,691,700 Additional information: a. Provide for depreciation as follows: fixtures and fittings 5% on cost, and motor vehicles 10% on cost. Depreciation charges should be applied equally between selling costs and administration expenses b. Wages and salaries is owing by $10,000, and insurance is owing by $5,000 c. The total preference share dividend is to be honoured d. The following expenses must be appropriated: Admin Selling & Dist Wages & salaries 80% 20% Insurance 3/4 1/4 Management fees 50% 50% Directors' fees 100% e. Goodwill impairment was estimated to be $30,000 f. Corporation tax is estimated at $25,000 g. Transfer $25,000 to general reserves Required: Prepare the following financial statements for the year: i. Statement of profit or loss ii. Statement of changes in equity ii. Statement of financial position