Garth Thompson is the owner of Thompson Warehouse. The entity sells sports supplies and also rents out additional space in the warehouse to a cricket club. Garth has supplied you with the information below and asked you to make the necessary adjustments and to prepare financial statements for her business in respect of the financial year ended $31$ December $2020.$LIST OF PRE$-$ADJUSTMENT BALANCES OF THOMPSON WAREHOUSEON $31$ DECEMBER $2020$:RandBank balance $($favourable$)180700$Supplies$35430$Equipment at cost$400000$Land and buildings at cost $($Land at cost$,$ R$800000)1550000$Accumulated depreciation: Buildings $(01/01/2020)144485$Long term loan$65000$Capital $(01/01/2020)1500000$Drawings$98450$Inventory $(01/01/2020)88100$Accounts receivable$43680$Allowance for doubtful debts $(01/01/2020)1110$Accounts payable$89370$Sales$1171330$Rent Income$24000$Purchases$333140$Carriage on purchases$18660$Returns inwards$6450$Returns outwards$1570$Salaries expense$165500$Advertising expense$18450$Repairs and maintenance expense$3790$Rates expense$39190$Telephone expense$12400$Interest expense$2925$Additional information:$1.$The business uses the periodic method for accounting for inventory and a gross profit percentage of $20\%$ is used$\mathrm{.}2.$During the year Garth took inventory home for his children to play with, with a selling price of R$1200.$ This transaction has not yet been recorded in the records of the business$\mathrm{.}3.$On $31$ December $2020,$ unused supplies and inventory were physically counted and amounted to R$2200$ and R$124980$ respectively$\mathrm{.}4.$The equipment was purchased on $01$ March $2020$ and the residual value of the equipment is estimated to be R$40000$ at the end of its useful life. The estimated useful life is $4$ years. The straight line method of depreciation is used$\mathrm{.}5.$The buildings are depreciated at $5\%$ per annum using the diminishing balance method. No additions were made to buildings$\mathrm{.}6.$Garth paid his personal house cleaner R$9500$ with a business cheque and debited salaries expense during the year$\mathrm{.}7.$Titus Najar, a debtor, skipped the country to marry his fianc$$ in India and Garth found out that he would never recover the R$1000$ Titus owed the business. He therefore decided to write this amount off on $31$ December $2020\mathrm{.}8.$An allowance of $5\%$ of the accounts receivable still need to be made for doubtful debts at $31$ December $2020\mathrm{.}9.$The rental agreement stipulates that an annual rental equal to $8\%$ of the annual cricket club revenue should be paid to Thompson Warehouse. The cricket club agreed to pay monthly instalments of R$2000$ on the first day of each month and then to settle the difference at the end of each year. All rent has been paid each month and credited to the rent income account. The cricket club earned R$348000$ in revenue for the $2020$ financial year, but has not made any further payments to Thompson Warehouse$\mathrm{.}10.$Garth was worried about not earning enough revenue and entered into a new advertising agreement with AdMark Limited on $30$ November $2020$ to promote the business for a twelve month period starting $01$ December $2020$ and ending on $30$ November $2021.$ The total amount for the campaign will be R$36000$ spread evenly over the year of the agreement and the advertising fee will be paid monthly in advance on the last day of the previous month. The payment on $30$ November and $31$ December has been made and debited to advertising expense$\mathrm{.}11.$Thompson Warehouse took out a loan on $1$ May $2020$ and interest on the loan is charged at a rate of $9\%$ per annum. The loan agreement also calls for six monthly interest payments at the end of each half year. A six monthly payment was made and recorded on $31$ October $2020\mathrm{.}12.$On $1$ October $2020$ Garth invested R$50000$ of his own money into a short$-$term investment account in the name of Thompson Warehouse with Capitek Bank and this transaction has not yet been recorded in the books of the business. Interest is received half yearly in arrears on $01$ April and $01$ October at $10\%$ per annum.You are required to:Prepare the three Statements