DQ1: This is an individual assignment which is worth 5% of your course grade. It is due on Wednesday June 8, 2022 at 11:59PM Question 1: The following trial balance was obtained from the books of Brandon Lee as at December 31, 2009 S Buildings 80,000 Provision for depreciation-buildings Equipment 16,000 42,000 Provision for depreciation-equipment 7,980 Capital 60,000 12% loan 25,000 Purchases and sales 75,000 120,000 Inventory at January 1, 2019 22,000 Insurance 5,000 Wages 12,000 Bad debts 700 Rent received 15,000 Bad debts recovered 3,000 Bank 24,720 Cash 8.500 Discounts 3,000 5,500 Drawings 12,000 Receivables & Payables 35,000 17,200 Provision for bad debts Carriage outwards 4,000 3.200 298.400 298,400 End of year footnotes included: a. Insurance is owing of $1,000 b. Wages is prepaid by $3,000 c. The provision for bad debts must be adjusted to 20% of receivables. d. Depreciate building at 10% using the reducing balance method, and equipment 10% based on the straight line method. e. Inventory at year end is valued at $25,000 f. The rent received is in respects to shop space rented to John Lui at a monthly rate of $1,000 starting January 2019 During the year the owner took goods valued at $3,000 for personal use. This was not reflected in the books. h. The current portion of the loan due for repayment in 2019 is $5,000 i. The loan interest due at the end of the year must be taken into consideration j. During the year equipment costing $8,000 for which there was a provision for depreciation of $3,240 had been removed from the books and sold for $6,500. Required: Prepare the income statement for the year ending December 31, 2019, as well as the statement of financial position as at date. Question 2: State six (6) reasons for preparing Control Account