Financial Accounting Class Assignment USB, a limited liability company, has the following trial balance at 31 December 2019. Debit Credit $ $ Cash at bank 100,000 Inventory at 1 January 2019 2 400,000 Administrative expenses 2 206,000 Distribution costs 650,000 Non-current assets at cost: Buildings 10, 000,000 Plant and equipment 1 400,000 Motor vehicles 320,000 Suspense 1 500,000 Accumulated depreciation Buildings 4 000,000 Plant and equipment 480,000 Motor vehicles 120,000 Retained earnings 560,000 Trade receivables 876,000 Purchases 4 200,000 Dividend paid 200,000 Debit Credit $ $ Sales revenue 11 752,000 Sales tax payable 1 390,000 Trade payables 1 050,000 Share premium 500,000 $1 ordinary shares 1 000,000 22 352,000 22 352,000 The following additional information is relevant a) Inventory at 31 December 2019 was valued at $1 600 000. While doing the inventory count, errors in the previous years inventory count were discovered. The inventory brought forward at the beginning of the year should have been $2.2m, not $2.4m as above. b) Depreciation is to be provided as follows. i) Buildings at 5% straight line, charged to administrative expenses ii) Plant and equipment at 20% on the reducing balance basis, charged to cost of sales iii) Motor vehicles at 25% on the reducing balance basis, charged to distribution costs c) No final dividend is being proposed d) A customer has gone bankrupt owing $76 000. This debt is not expected to be recovered and an adjustment should be made. An allowance for receivables of 5% is to be set up e) 1m new ordinary shares were issued at $1.50 on 1 December 2019. The proceeds have been left in a suspense account. Required Prepare the following a) Statement of profit or loss for the year ended 31 December 2019 (3 marks) b) Statement of changes in equity for the year ended 31 December 2019 (4 marks) c) Statement of financial position as at 31 December 2019 (8 marks) All statements are to be prepared in accordance with the requirements of IFRSs. Ignore taxation.