AAA, a limited liability company, has the following trial balance at 31 December 20X9.
K USD	Debit	Credit
Cash at bank	1970
Inventory at 1 January 20X9	2,600
Administration expenses	2,300
Distribution costs	450
Non-current assets at cost:
Buildings	12,000
Plant and equipment	1,500
Motor vehicles	450
Suspense		1,250
Accumulated depreciation
Buildings		5,000
Plant and equipment		500
Motor vehicle		125
Retained earnings		660
Trade receivables	954
Purchases	5,500
Dividend paid	400
Sales revenue		15,000
Sales tax payable		1,239
Trade payables		2,100
Share premium		750
$1 ordinary shares		1,500
	28,124	28,124
The following additional information is relevant.
(a) Inventory at 31 December 20X9 was valued at $1,200,000. While doing the inventory count, errors in the previous year’s inventory count were discovered. The inventory brought forward at the beginning of year should have been $2,5m, not $2,6m as above.
(b) Depreciation is to be provided as follows.
(i) Buildings at 7% straight line, charged to administrative expenses
(ii) Plant and equipment at 15% on the reducing balance basis, charged to cost of sales
(iii) Motor vehicles at 30% on the reducing balance basis, charged to distribution costs
(c) No final dividend is being proposed
(d) A customer has gone bankrupt owing $54,000. This debt is not expected to be recovered and an adjustment should be made. An allowance for receivables of 7% is to be set up.
(e) 1m new ordinary shares were issued at $1.25 on 1 December 20X9. The proceeds have been left in a suspense account.
Required
Prepare the following.
Statement of profit and loss for the year ended 31 December 20X9 (25 pts)
Statement of changes in equity for the year ended 31 December 20X9 (15 pts)
Statement of financial position as at 31 December 20X9 (20 pts)