Arapeta Williams owns Southern Supplies Ltd, a small building supplies business. He asks you to assist in preparing his final accounts from the following trial balance for the period ended 31 March 2020.

	Debit	Credit
Cash	$7,000
Accounts Payable		$29,000
Accounts Receivable	$17,000
Advertising	$3,600
Capital (Opening)		$70,000
Capital Contributed		$28,500
Delivery Van	$20,000
Drawings	$24,000
Electricity	$3,100
Freight Inwards	$4,600
Fuel (Van) Expense	$2,500
General Expenses	$2,450
Interest Expense	$2,280
Interest Received		$130
Inventory (Opening)	$2,600
Loan from Southern Bank		$44,500
Purchases	$110,000
Rent Expense	$52,000
Sales Revenue		$177,500
Shop Fixtures	$65,500
A/D Shop Fixtures		$14,000
Term Deposit (6 months)	$8,000
Wages - Delivery Driver	$18,000
Wages - General Manager	$21,000

After checking Arapetas accounts you find the following adjustments have not been made:

1. Depreciation for the year has not been calculated.
   1. A delivery van was purchased at the start of the year for $20,000. It has an estimated useful life of 8 years and will be depreciated using the diminishing balance method at 15%.
   2. The fixtures in the shop are depreciated using the straight-line method over 20 years. At the start of the year, accumulated depreciation of $14,000 and residual value of $9,500.
2. A $8,000 bill from the radio station for advertising was received on 30March and has not been entered into the trial balance. The bill has not been paid.
3. The delivery driver was not paid for 10 hours of overtime. His normal hourly wage is $20.00. Overtime is paid at time-and-a-half (1.5x) of normal wages.
4. The shop is rented for $48,000 per year. Rent Expense includes rent paid up until the end of April.
5. On 29 March, a customer made a deposit of $2,000 for goods that have not been delivered yet. This deposit has been included in Sales Revenue.
6. Inventory stocktake at balance date = $54,000

1. For the first five adjustments above, describe the adjustment to the accounting records that must be made. (20 marks)
2. Calculate the Cost of Goods Sold for the year
3. From your calculations above, prepare an Income Statement for the year ended 31 March 2020
4. From your calculations above, prepare a balance sheet as at 31 March 2020