Lydia owns and runs Purple Co., a retailer of textiles. The following unadjusted trial balance has been taken from her business records as at 31 March 2022: Unadjusted Trial Balance as at 31 March 2022 Account Dr ($) Cr ($) Sales 1,782,600 Commission income 35,600 Furniture, at cost 298,500 Motor vehicles, at cost 614,800 Carriage inwards 36,300 Utilities expense 81,700 Trade receivables 270,800 Trade payables 221,400 Discount 29,200 41,800 Accumulated depreciation as at 1 April 2021 - Furniture - Motor vehicles Drawings: Lydia Capital: Lydia 163,500 308,300 47,500 320,000 Accumulated depreciation as at 1 April 2021 - Furniture - Motor vehicles Drawings: Lydia 163,500 308,300 47,500 Capital: Lydia Advertising expense Rent expense Purchases Returns inwards Returns outwards Insurance expense 320,000 54,600 211,800 872,300 45,900 37,700 102,300 Salaries expense 214,200 Carriage outwards 41,500 5% Bank loan, repayable in 2030 280,000 Cash at bank 123,700 Inventory as at 1 April 2021 145,800 3,190,900 3,190,900 The following additional information was made available before the year-end closing: 1. 2. 3. 4. In January 2022, Purple Co. returned some defective goods of $6,800 to its suppliers. These had been purchased on credit. The business had not recorded the return of these goods as at 31 March 2022. Purple Co. received $11,380 for goods to be delivered in April 2022. This had been included in Purple Co.'s sales for the year. Lydia has rented out her warehouse to Monica Trading at a monthly rental of $4,500. The rental for February and March 2022 has not been received as at 31 March 2022. The amount of annual depreciation on fixed assets were as follows: Furniture Motor vehicles $33,700 $41,600 5. 6. 7. Insurance expense amounting to $5,100 had been mistakenly recorded as salaries expense. A receipt of $99,750 from a credit customer in February 2022 had not been recorded in the books of Purple Co. A 5% discount which had been recorded had been given to the customer for prompt payment. Advertising expense in the trial balance consisted of advertising paid for January 2022 to June 2022. 7. 8. 9. Advertising expense in the trial balance consisted of advertising paid for January 2022 to June 2022. Interest expense in the trial balance relates to the bank loan which was taken up on 1 July 2021. The outstanding interest for year has not been accounted for as at year-end. During the year, Lydia took some inventory which had cost $4,930 for personal use. This had been omitted from the financial records of Purple Co. as at 31 March 2022. 10. Inventory as at 31 March 2022 amounted to $160,200 after a physical stock count. Required: (a) Prepare the necessary general journal entries to record transactions (1) to (9). Narrations are not required. (Hint: For some transactions, you will need to create new accounts which are not shown on the trial balance.) (40 marks) (b) Prepare the following financial statements for Purple Co.: (i) Statement of Comprehensive Income for the year ended 31 March 2022 (ii) Statement of Financial Position as at 31 March 2022 (60 marks)