Prepare the Statement of Comprehensive Income for the year ended 28 February 2022 INFORMATION The trial balance, additional information and adjustments given below were extracted from the records of Metro Limited for the financial year ended 28 February 2022. METRO LIMITED PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022 Balance sheet accounts section Ordinary share capital Retained eamings Land and buildings at cost Equipment at cost Vehicles at cost Accumulated depreciation on equipment Accumulated depreciation on vehicles Trading inventory Debtors control Provision for bad debts Bank overdraft Debit (R) Credit (R) 2200 000 608 000 2300 000 1060 000 880 000 440 000 220 000 210 000 265 000 15 000 70 000 Creditors control Loan: Ria Bank (18% p.a.) South African Revenue Services (Company tax) Nominal accounts section Sales Cost of sales Sales retums Advertising Stationery Bad debts Discount allowed 130 000 1960 000 130 000 140 000 50 000 15.000 20 000 325 000 250 000 4 580 000 Discount received 16000 Electricity and water 180 000 Telephone 90 000 1000 Interest on overdraft Directors' fees Audit fees Insurance 240 000 60000 32 000 950 000 Salaries 13 000 Bank charges Rent income 112000 Municipal rates 90 000 8 836 000 8 836 000 ADDITIONAL INFORMATION AND ADJUSTMENTS 1. 1.1 According to physical stocktaking, the following were on hand on 28 February 2022: Trading inventory R200 000 1.2 Stationery R3 000 2. 3. 4. Advertising includes a payment of R6 000 for six advertisements at R1 000 each that will be published monthly from January 2022 and June 2022. Part of the building has been let to a tenant since 01 March 2020. Rent has been received up to 31 January 2022. Note: The rental increased by 10% on 01 December 2021. On 28 February 2022 an amount of R1 200 was received from a debtor who was only able to pay 60% of his debt. The balance of his account must be written off. No entries were made for these transactions. 5. The provision for bad debts must be increased to R18 000 6. Directors' fees amount to R21 000 per month. Make the necessary adjustment. 7. 8. The loan from Ria Bank was obtained on 01 February 2022. Provide for the outstanding interest on loan. A notice from the municipality indicated that the municipal rates for the year ended 28 February 2022 was calculated at R50 per R1 000 of the value of the land and buildings. Make the necessary adjustment. 9. Provide for depreciation as follows: 9.1 On vehicles at 20% per year using the diminishing balance method. 9.2 On equipment, R106 000. 10. Based on the taxable income of the company, an amount of R6 114 is owed by the tax authority (South African Revenue Services) to Metro Limited for company tax METRO LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2022 Sales Cost of sales Gross profit Other operating income Gross operating income Operating expenses Workings (If any) R Operating profit Interest income Interest expense Profit before tax Company tax Profit after tax