George is in business as a retailer of jewellery. The following information was available from his books on 30 April 2021. E Capital 100 000 Drawings 15 000 Non-current assets (cost): Leasehold premises 60 000 Security equipment 29 000 Fixtures and fittings 45 000 Provisions for depreciation: Leasehold premises 42 000 Security equipment 6 000 Fixtures and fittings 39 000 Revenue 250 000 Purchases 120 000 Purchase returns 8 500 Inventory - 1 May 2020 97 000 Wages 51 400 Trade receivables 10 700 Trade payables 34 600 Cleaning expenses 7 100 Rates 15 800 Electricity and water charges 11 750 Cash and bank 9 100 Dr Credit card commission paid 3 500 Security equipment maintenance 4 750 Additional information at 30 April 2021 (1) Inventory 187 500 (2) Wages owing $600, electricity owing $550 (3) Rates paid in advance $2 100, water charges paid in advance $900 (4) A full year's depreciation is charged on all non-current assets owned at the end of the year as follows. The lease on the premises is for 15 years. An appropriate amount is written off the lease each year. Security equipment at the rate of 20% reducing balance. Fixtures and fittings at the rate of 10% per annum straight line. (5) On inspecting his books George found that the following errors had been made and these required correction. 26 January 2021 A payment by cheque, E3 500, to a trade payable, Robin Gems, had been recorded in the books as $350. 6 March 2021 Purchases of security equipment, 16 000, on credit from Hove Security had not been recorded in the books. P658 Required (a) Prepare the: (i) Journal entries, including bank entries, correcting the errors of 26 January 2021 and 6 March 2021. Narratives are not required (5) (ii) Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 April 2021 (12) (iii) Statement of Financial Position at 30 April 2021. (15) George has been making projections for the next financial year ended 30 April 2022. He has projected the following for the year. Revenue will increase by 20% and gross profit as a percentage of revenue will be 40% Premises costs will be $50 000 All other costs will be $15 000 plus 10 pence (10.10) for every f1 of revenue. Required (b) State whether the following costs are fixed, semi-fixed, semi-variable or variable. Premises costs All other costs (2) (c) Prepare the Forecast Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 April 2022