Can you analyze the additional info from 1 to 11 and write down the analysis step by step, because l really wanna know how these additional info contribute to the balance sheet and income statement. l need to learn the process!

8.2 Novena Shirts Ltd The balances below have been extracted from the accounting records of Novena Shirts Limited at 31 December 20x3: Dr Cr 55,000 26,200 20,000 10,000 140,000 18,000 22,000 80,000 1,800 320,000 210,000 Revaluation reserve Retained profits at 1.1.X3 Share capital: 200,000 ordinary shares of 100 each :10,000 8% cumulative $1 preference shares Land and buildings. at valuation Land and buildings: accumulated depreciation Share premium 6% Debenture loan: 2009 Provision for doubtful debts Plant and machinery cost Plant and machinery accumulated depreciation Interim dividend paid on ordinary shares Interim dividend paid on preference shares Corporation tax Debenture interest Inventory at 1.1.X3 Trade receivables Bank account Prepaid insurance at 1.1.X3 Accrued electricity at 1.1.X3 Trade payables Non-current asset disposal proceeds Sales Purchases Wages and salaries Insurance Travel and entertainment Professional fees Electricity 4,000 400 2,200 2,400 35,000 65,000 14,100 1,400 6,000 17,000 2,200 928,800 396,000 367,000 13,200 21,000 14,500 29,000 1,411,100 1,411,100 You are given the following information: 1. Inventory at 31 December 20X3 cost $47,000. Included in this inventory are items that cost $1,400 and which are now obsolete and are expected to be sold for $200. 107 AC1025 2. The land and buildings, at valuation, comprises land $80,000, budding 500,000. The land is to be revalued to $250,000 Prepaid insurance 31 December 20x3 s 51.700 and accrued electricity at that date, is 55,500 4 Anlem of plant and machinery, the cost of which had been 55,000 and whose netbook value was $2,300, had been sold in the year for 83.200. No accounting entries relating to the disposal have been made in the company's books of account cher than in relation to the disposal proceeds 5. Depreciation on fixed assets is to be charged as follows: Na depreciation is charged 1 per cent per annum at a straight-line basis 30 per cent per annum on reducing balance basis Freehold land Building Plant and machinery 6 Ahad debt of $3,000 is to be written off 7. The provision for bad debts is to be revised to 4 per cent of trade receivables 5. Afinal dividend of a per ordinary share is to be proposed by the directors 9. The dividend on the cumulative preference shares, due to be paid on 1 January 20X4, is to be provided 10. Corporation tax of 520.000 on these years profits is to be provided 11. Interest on the debentures de to be paid on 1 January 20X4 is to be provided Required All income statement for the year ended 31 December 20X3, a statement of financial position at that date, and a statement of movements in equity note for 20x3, all in good style, for the directors