Green Spaces plc provides a wide range of garden supplies to customers across the country. It sells everything from garden furniture and sheds to plants and garden accessories. It has a variety of customers from businesses to private individuals. The following is the trial balance at 31 March 2022: Debit Credit 150,000 20,000 9,500 35,000 120,000 24,000 55,000 16,500 82,000 7,800 1 Ordinary shares 5% Non-redeemable preference shares Share premium account Bank loan Plant and equipment at cost Plant and equipment accumulated depreciation Delivery vehicles at cost Delivery vehicles accumulated depreciation Bank Listed investments Retained earnings at 31 March 2021 Inventory at 31 March 2021 Trade receivables Trade payables Cash and cash equivalents Purchases Sales revenue Investment income Allowance for irrecoverable debts Distribution costs Administrative expenses General reserve Suspense account Prepayment 12,325 24,500 12,600 14,910 8,400 178,018 320,536 800 750 53,600 52,053 2,400 12,500 250 606,721 606,721 Additional Information: i) The inventory value at 31 March 2022 was 41,324. ii) The company's depreciation policy for Property, Plant and Equipment is set out below; All plant and equipment are depreciated using the Reducing Balance Method at a rate of 20%. Delivery vehicles are depreciated at 15% using the Straight-Line Method iii) On 12 February 2022, the company issued 10,000 new shares at a price of 1.25. The transaction was recorded at the time the cash was received, however, the junior accountant debited the suspense account as he was unsure which account to post the amount to. iv) In March 2022, the directors declared an ordinary dividend for the year of 5 pence per ordinary share. The dividend remained unpaid by 31 March 2022. This transaction is not reflected in the above trial balance. v) Green Spaces plc recently expanded their premises and secured the property next to their current premises which they use for storage of goods. Rent on the new property is 10,200 per annum. When you spoke to the bookkeeper at Green Spaces plc, she hadn't received the invoice for the month of March 2022 and has made no record of it. vi) The prepayment of 250 shown on the trial balance represents a journal recorded for the period ended 31 March 2021 for prepaid audit services. vii) One of the customers of the company went into liquidation in January 2022. This customer was recorded as a debtor (i.e. reflected in trade receivables) owing 1,200 to Green Spaces plc. The Directors also reviewed the Trade Receivables listing and have decided that the allowance for irrecoverable debts should be maintained at 8% of trade receivables. viii) The listed investments are held on a long-term basis. ix) The corporation tax payable on the year's profit is estimated to be 3,450. Required: You are the accountant at Green Spaces plc. Using the Trial Balance above and the additional information, prepare the following financial statements for the financial year ended 31 March 2022: Statement of Profit or Loss (Income Statement) Statement of Changes in Equity Statement of Financial Position (Balance Sheet) You need to show all your workings. Marks will be awarded for layout and workings as well as the prepared accounting information
