I am really weak at adjustments. I would really appreciate if you can help me out as detailed as possible so that I can learn from it. Thanks ^^

p/s: if you have tips on how to improve on adjustment techniques, I am really grateful and open to learn

Question 4 Shakespeare Ltd is a company, which publishes and distributes high quality textbooks. The following trial balance has been extracted from the books of the company as at 30th June 2019: 441,000 72,000 63,000 621,000 2,700.00 1,368,000 360,000 495,000 252,000 30,000 153,000 36,000 252,000 Distribution costs Bad debts written off Bank Trade Accounts Payable Trade receivable Provision for depreciation of Equipment Provision for depreciation of vehicles Directors' remuneration Heating and lighting Income from investments Administrative expenses Dividend Investments - long term Issued share capital (2,250,000 shares at 1.00) Long term loan at 12% Equipment at cost Marketing and selling expenses Retained profit at 1st July 2018 Provision for doubtful debt Purchases Rent Sales Inventory at 1st July 2018 Vehicles at cost Wages and salaries Proceeds on disposal of vehicle 2,250,000 630,000 3,780,000 270,000 1,188000 72,000 11,160,000 675,000 18,900,000 1,206,000 720,000 3,150,000 6,000 24,425,000 24,425,000 The following additional information is available: (1) Inventory at 30th June 2019 amounted to 1,395,000 at cost. (2) The proceeds on disposal of 6,000 in the trial balance relates to the sale of the Finance Director's car on 1st July 2018. This car had been purchased for 20,000 on 1st July 2017. The straight-line basis is to be used to provide depreciation on equipment at 20% and vehicles at 25%. You may assume that residual values are deemed to be immaterial for all non- current assets. (3) The provision for doubtful debts should be adjusted to 5% of outstanding trade Accounts Receivables at 30th June 2019. (4) Provision should be made for the audit fee of 26,000 and a full year's interest on the long-term loan. (5) A provision of 540,000 is to be made for taxation on the profit for the year ended 30th June 2019. Required: a) An Income Statement for Shakespeare Ltd for the year ended 30th June 2019 and a Statement of Financial Position at that date in a form suitable for presentation to directors. (25marks) (b) The Sales Director has asked what the term 'straight-line depreciation' means. Explain this term, giving one alternative method of determining depreciation and describe how an appropriate method should be chosen