Q1. The following trial balance was extracted from the books of Kowus Ltd at the close of business on 31 December 2018. DR CR s 900.000 300.000 255.000 1,050,000 120,000 172.000 100.000 24,000 51.600 84,912 1,022.000 439.100 Ordinary Share capital Loan capital Fixtures at cost Buildings at cost Equipment at cost Motor vehicles at cost Provision for depreciation buildings 1/1/2018 Provision for depreciation equipment 1/1/2018 Provision for depreciation: motor vehicles 1/1/2018 Inventory 1/1/2018 Sales Purchases Carriage inwards Salaries and wages Directors' remuneration Motor expenses Business rates and insurance General expenses Interest on loan Account receivable Account payable Bank General reserve Retained earnings 31/12/2017 6.200 192.400 123,000 3.1.20 8.690 5.600 15,000 186.100 113.700 8,390 30.000 2.669,512 108.212 2.669,512 The following adjustments are needed: (1) Inventory at 31/12/2018 was $81,413. (ii) Depreciation buildings $10,000; motor vehicles $8,000; Fixtures 20,000; equipment $10,000. (iii) Accrue loan interest $15,000. (iv) Provide for ordinary dividend of 10%. (v) Transfer $10,000 to general reserve (vi) Provide for corporation tax $40,000 (vii) Accrued: rent $600 (viii) Business rates prepaid $690 Required: (a) From the above information, prepare the income statement for the year ending 31 December 2018 and statement of financial position as at that date