On 31 December 2019, the following trial balance was extracted from the books of Richard McManus: DR CR Capital (at 1 January 2019) 105,573 Retained earnings at 1 January 2019 5,135 Land and buildings 98,000 Motor van (cost) 25,600 Motor van depreciation) 14,800 Purchases 35,420 Sales 81,250 Provision for doubtful debts 305 Salaries 14,000 Carriage inwards 782 Investment income 1,648 Trade receivables 6,290 Trade payables 2,016 Cash 758 Bank balance 5,092 Inventory at 1 January 2019 3,870 Sales and purchases returns 509 724 Insurances 946 Telephone 584 Fixtures and fittings 11,800 Rates 1,650 Drawings 6.150 211,451 211,451 On 31 December 2019, the following adjustments had not been made: 1. Inventories at 31 December 2019 were valued at 6,094. 2. There was an outstanding telephone bill of 230. 3. An insurance premium of 225 was prepaid at the end of December 2019. 4. Richard McManus uses the following methods of depreciation: a) Fixtures and fittings - straight line method of depreciation over a period of 10 years. b) Motor vans - reducing balance method of depreciation at the rate of 25%. 5. A bad (irrecoverable) debt of 550 is to be written off. An allowance for receivables (also known as a provision for doubtful debts) of 275 is to be made. a) Prepare ledger accounts (T accounts) to show year-end adjustments for the following: 1. Inventory 2. Cost of sales 3. Provision for depreciation on motor van 4. Motor van depreciation expense 5. Telephone expenses 6. Insurances expenses 7. Trade receivables 8. Allowance for receivables (also known as provision for doubtful debts). 9. Bad/irrecoverable and doubtful debts expense (20 marks) b) Prepare the statement of financial performance for the year ended 31 December 2019 for Richard McManus. (15 marks) c) Prepare the statement of financial position as at 31 December 2011 for Richard McManus. (15 marks)