By considering adjustments,

1. Prepare an Income Statement for the year ended 31 December 2016

2. Prepare a Statement of Change in Equity for the year ended 31 December 2016

3. Prepare a Statement of Financial Position as at 31 December 2016

HELP WILL BE APPRECIATED!

Below you can find the Trial balance of Company M as at 31 December 2016 Ordinary Shaes 250 000 $1 par Sales Purchases Bank Inventory as at January 2016 Administrative Expenses R&D Expenses Returns Wages Rent Insurance Light and Heat Marketing Expenses Loan from bank @4% Reedemable Preferred shares @8% Irrecovera ble debt Receivables Payables Retained Earnings Building 250 000 485 000 392 000 35 000 220 000 18 000 30000 1 200 48 000 2 800 800 1 200 1 100 600 40 000 40 000 200 75 400 48 400 98 700 - cost 220 000 accumulated depreciation Jan 2016 95 000 Fixtures: 30 000 100 000 1 150 700 - cost accumultaed depreciation Jan 2016 20000 Land Revaluation Reserves 37 000 1 150 700 Additions: 1) The board of directors proposed to declare a final dividend on the equity shares of 20 cents per share 2) In the end of the year your corporate tax accounted for $300 3) Rent of $900 for the quarter was paid in the beginning of November 2016 4) S200 Insurance was prepaid for the half year ended 31 March 2017 5) An electricity bill for the 3 months period ended February 28 2017 amounts to $2 400 and has not yet been recorded in the accounts 6) One of the customers went bankrupt during 2016 and is not able to pay you in a full, so that additional $250 is to be 7) 8) written off as an irrecoverable debt Land is to be revalued by $20 000 Depreciation is to be provided as follows: Building: 5% annually, straight line (no residual value) Fixtures: straight ine, no residual value, useful life of 5 years * 9) Inventories as 31 December 2016 are valued at $270 000 10) In the end of the year company issued 2 for 5 bonuses Below you can find the Trial balance of Company M as at 31 December 2016 Ordinary Shaes 250 000 $1 par Sales Purchases Bank Inventory as at January 2016 Administrative Expenses R&D Expenses Returns Wages Rent Insurance Light and Heat Marketing Expenses Loan from bank @4% Reedemable Preferred shares @8% Irrecovera ble debt Receivables Payables Retained Earnings Building 250 000 485 000 392 000 35 000 220 000 18 000 30000 1 200 48 000 2 800 800 1 200 1 100 600 40 000 40 000 200 75 400 48 400 98 700 - cost 220 000 accumulated depreciation Jan 2016 95 000 Fixtures: 30 000 100 000 1 150 700 - cost accumultaed depreciation Jan 2016 20000 Land Revaluation Reserves 37 000 1 150 700 Additions: 1) The board of directors proposed to declare a final dividend on the equity shares of 20 cents per share 2) In the end of the year your corporate tax accounted for $300 3) Rent of $900 for the quarter was paid in the beginning of November 2016 4) S200 Insurance was prepaid for the half year ended 31 March 2017 5) An electricity bill for the 3 months period ended February 28 2017 amounts to $2 400 and has not yet been recorded in the accounts 6) One of the customers went bankrupt during 2016 and is not able to pay you in a full, so that additional $250 is to be 7) 8) written off as an irrecoverable debt Land is to be revalued by $20 000 Depreciation is to be provided as follows: Building: 5% annually, straight line (no residual value) Fixtures: straight ine, no residual value, useful life of 5 years * 9) Inventories as 31 December 2016 are valued at $270 000 10) In the end of the year company issued 2 for 5 bonuses