PLEASE PROCEED WITH ONE COLUMN SOLUTION

Midway Traders is owned by Mr K. Rabada. His accountant, Mr V. Philander, prepared the Statement of Comprehensive Income for the year ended 29 February 2020. However he unexpectedly fell ill and was unable to prepare the remaining financial statements. Mr K. Rabada requires your assistance in preparing the Statement of Financial Position. The net profit, pre-adjustment trial balance, adjustments and additional information from accountants records as at 29 February 2020 were retrieved and are presented below.

REQUIRED Prepare the Statement of Financial Position as at 29 February 2020. Note:

* Use the format from your study guide.

* The notes to the financial statements are not required.

INFORMATION The information given below was retrieved from the accounting records maintained by the accountant of Midway Traders on 29 February 2020, the end of the financial year:

MIDWAY TRADERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2020 Debit (R) Credit (R) 1 656 600 134 200 1 254 900 945 000 650 000 Balance sheet accounts section Capital Drawings Land and buildings Vehicles at cost Equipment at cost Accumulated depreciation on vehicles Accumulated depreciation on equipment Fixed deposit: Pep Bank (8% p.a.) Trading inventory Debtors control Provision for bad debts Bank Creditors control Mortgage loan: Pep Bank (20% p.a.) 528 000 365 200 198 000 155 000 176 600 9900 137 800 184 800 330 000 2070 000 Nominal accounts section Sales Cost of sales Sales returns Salaries and wages Bad debts Stationery Rates and taxes Motor expenses Advertising Telephone Electricity and water Bank charges Insurance Interest on fixed deposit Rent income 794 000 13 000 587 000 18 000 30 000 58 000 32 000 23 000 44 000 66 000 8 000 10 000 14 000 176 000 5 334 500 5334 500 ADJUSTMENTS AND ADDITIONAL INFORMATION 1. Physical stocktaking on 29 February 2020 showed the following inventories: 1.1 Trading inventory R150 000; 1.2 Stationery R3 000. 2. Write off the account of debtor, R. Smith, R2 000. 3. The provision for bad debts must be increased by R1 000. 4. Rent income amounts to R16 000 per month. Make the necessary adjustment. 5. The water and electricity account for February 2020 was due to be paid on 02 March 2020, R11 000. 6. Rates and taxes include an amount of R15 000 that was paid for the period 01 January 2020 to 31 March 2020. 7. An amount of R800 appeared in the February 2020 bank statement for bank charges. This transaction was not recorded. 8. The investment in fixed deposit was made on 01 March 2019 and matures on 31 August 2020. Make the necessary adjustment for the interest. 9. The loan from Pep Bank was obtained on 01 February 2020. Provide for the outstanding interest. Interest is not capitalised. Note: Loan repayments during the next financial year are expected to total R50 000. 10. Provide for depreciation as follows: 10.1 On equipment at 10% p.a. on cost. 10.2 On vehicles at 20% p.a. using the diminishing balance method. 11. The net profit, according to the Statement of Comprehensive Income for the year ended 29 February 2020, amounted to R429 140 after the above adjustments and additional information were taken into account