Part 1 (a) Imogen runs the Manor Park Hotel in Powys, Wales. She purchased the 50 bedroom hotel 10 years ago. She is wondering if the business is trading as well as it could be and would like a report stating how we feel things are. This she can then discuss with her fiance, Samantha, as they are wondering if now is the right time to expand and perhaps form a company or for her to sell the business and look for a new venture with her soon to be wife? (b) The Trial Balance as at 31 December 2022 is as below:

Trial Balance as at 31/12/2022 Telephone 31,780 Insurance 11,200 Sales (accommodation, food & liquor) 955,330 Laundry & cleaning 4,800 Gas & Electricity 15,600 Salaries 78,460 Business rates 21,000 Wages 196,000 Other direct labour expenses 24,000 Purchases (food & liquor) 74,130 General expenses 73,000 Opening inventory of food & liquor 8,000 Drawings 180,000 Freehold Land at cost 790,000 Equipment at cost 224,375 Furniture and fittings at cost 197,500 China, Cutlery etc at cost 8,160 Loan from Virgin Money bank (expires 2032) 705,600 Accounts receivable 35,000 Accounts payable 18,700 Owners Capital 266,000 Cash at Bank 97,000 Depreciation of equipment at 1/1/22 84,875 Depreciation of Furniture and fittings at 1/1/22 39,500 2,070,005 2,070,005 NOTES: & Further information during 2022 the following transactions took place: 1. As at 31/12/2022 the stock of food and liquor was 12,000. 2. A 2,100 bill for Gas and Electricity for the quarter to 31/12/2022 has just been received and is not included yet in the trial balance. 3. The General expenses includes a prepayment of 1,500 for their premises insurance. 4. The Loan with Virgin Money Bank attracts a fixed interest rate of 8% p.a. and has not been included for the year. 5. Telephone payments made contain an advance rental payment in respect of their switchboard of 1,000 and is for the year ending September 2023. 6. Accrued wages due on 31/12/2022 are 1,300. 7. Business rates paid so far are for only 9 months of the year. The final payment for the remaining 3 months is due but not yet paid. 8. Provide for depreciation of Equipment and Furniture & fittings at 20% using the reducing balance method. 9. China and glass etc has been revalued at 7,960. Cont Required: i) Prepare an Income Statement and a Statement of Financial Position for Imogen for the year ended 31st December 2022 and as at that date.