Diversity Ltd. shows the following final balances for the different accounts on 31st December 2021 (the accounting-year end): Account name Value () Sales 600,000 Purchases 230,000 Administration expenses 60,000 Distribution expenses 20,000 Inventory at 31/12/2020 340,000 Buildings 110,000 Accumulated depreciation Buildings at 01/01/2021 30,000 Capital (ordinary shares 1 each) 200,000 Retained earnings at 31/12/2020 30,000 Share premium 5,000 Trade payables 25,000 Long-term debts 86,500 Trade receivables 12,500 Cash 214,000 Allowance for trade receivables 10,000 Required: a) Prepare the Trial Balance for Diversity Ltd. on 31st December 2021 corresponding to the previous information. b) Considering the following additional information, prepare the Income Statement for Diversity Ltd. on 31st December 2021: Additional Information: 1) Inventory was valued at 130,000 on 31st December 2021. 2) Buildings have a useful life of 10 years. Diversity Ltd. uses the straight line method for depreciation. 3) Directors have decided to write off 1,000 of trade receivables as bad debt. 4) The figure for administration expenses includes a prepayment of 35,000 for insurance. 5) On 31st December 2021, Diversity Ltd. has salaries still outstanding amounting to 2,000. 6) Distribution expenses from the trial balance correspond to services consumed by the company but not paid during the current accounting period. 7) Corporation tax rate equals 20%. c) Draw the journal entries corresponding to the additional information of b).