CR 7 The Dowrich Company Limited is a trader in industrial chemicals The following trial balance was obtained as at December 31, 2016 DETAILS DR Sales 1,800,000 Cost of sales 1.200.000 Fixtures and fittings 120,000 Provision for depreciation - fixtures and fittings 24,000 Stock at December 31, 2016 160,000 Insurance expense 18.000 Directors' fees 50,000 Ordinary shares dividends paid 15,000 Bank 40,000 Wages and salaries 140,000 Debenture interest paid 16,000 Goodwill 200,000 Premises 450,000 10% Debenture 200,000 Retained profits 50.000 Debtors 160,000 Creditors 40,000 General reserves 115,000 Management fees 80,000 Ordinary shares a $0.50 400,000 10% Preference shares @ $2 200,000 Motor vehicles 200,000 Provision for depreciation - motor vehicle 40.000 2.859,000 2.859,000 End Notes: 1. Wages and salaries is prepaid by $20,000 2. Insurance is owing by S2,000 3. Corporation tax is estimated at $45,000 4. The goodwill is to be impaired by 25% 5. A transfer of $30,000 is to be made from profits to general reserves 7 6. Provide for depreciation as follows 10% Tiems Method Rate Fixtures and fittings Straight line Motor vehicle Reducing balance 10% 7. The preference shares dividends will be honored 8. The following expenses are to be apportioned between admin and selling & distribution Exprese Items Admin Sell & Dist. Wapes and salaries 70% 3094 Insurance 50% SON Management fees 6096 40% Directors fees 50% SU Depreciation charges 40 60% Required: Prepare the following 1. The statement of profit and less for the year ending December 31, 2016 2. The statement of change in equity for the year ending December 31, 2016 3. The statement of financial position as at December 31, 2016