Adjustments and additional information 1. A physical count revealed the following inventories on hand on 28 February 2022: Trading inventory: R 66800 Packing materials: R 4000 2. Received an account from Minty's Tyres for replacing the tyres on the motor vehicle, R6 500. No entry has been made for this. 3. The account of debtor, L. Azizalahoff, who owed R5 000 must be written off as irrecoverable. 4. A debtor whose account of R2 400 was overdue for one month must be charged interest at a rate of 12% per annum. 5. The provision for bad debts must be reduced to R1550. 6. The interest on loan for February 2022 has not yet been paid. 7. The telephone account for February 2022 will only be paid on 03 March 2022, R1 000. 8. The insurance account includes the annual building insurance premium that was paid for the period 01 September 2021 to 31 August 2022, R1 800. 9. The bookkeeper did not record an amount of R500 that was reflected on the bank statement for service fees. 10. Rent has been received in advance for one month. 11. Provide for depreciation as follows: 11.1 On equipment at 10% per annum on cost. Note: Equipment with a cost price of R20 000 was purchased on 01 June 2021. The purchase has been recorded. 11.2 On vehicles at 20% per annum on the diminishing balance. QUESTION TWO FINANCIAL STATEMENTS (20 MARKS) The trial balance and additional information given below were obtained from the records of Liat Traders on 28 February 2022, the end of the financial year. REQUIRED: Use the trial balance, adjustments and additional information to prepare the Statement of Comprehensive Income for the year ended 28 February 2022. Liat Traders PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022 Adjustments and additional information 1. A physical count revealed the following inventories on hand on 28 February 2022: Trading inventory: R 66800 Packing materials: R 4000 2. Received an account from Minty's Tyres for replacing the tyres on the motor vehicle, R6 500. No entry has been made for this. 3. The account of debtor, L. Azizalahoff, who owed R5 000 must be written off as irrecoverable. 4. A debtor whose account of R2 400 was overdue for one month must be charged interest at a rate of 12% per annum. 5. The provision for bad debts must be reduced to R1550. 6. The interest on loan for February 2022 has not yet been paid. 7. The telephone account for February 2022 will only be paid on 03 March 2022, R1 000. 8. The insurance account includes the annual building insurance premium that was paid for the period 01 September 2021 to 31 August 2022, R1 800. 9. The bookkeeper did not record an amount of R500 that was reflected on the bank statement for service fees. 10. Rent has been received in advance for one month. 11. Provide for depreciation as follows: 11.1 On equipment at 10% per annum on cost. Note: Equipment with a cost price of R20 000 was purchased on 01 June 2021. The purchase has been recorded. 11.2 On vehicles at 20% per annum on the diminishing balance. QUESTION TWO FINANCIAL STATEMENTS (20 MARKS) The trial balance and additional information given below were obtained from the records of Liat Traders on 28 February 2022, the end of the financial year. REQUIRED: Use the trial balance, adjustments and additional information to prepare the Statement of Comprehensive Income for the year ended 28 February 2022. Liat Traders PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022