Q.3 The following trial balance has been extracted from the books of Sentinel in September Plc 'as at 31 May, 2017 Cr S Dr S 257 10 5 85 100 6 225 60 20 5 200 Administrative expenses Audit fees Bank Payables 12% Loan notes Debenture interest paid Receivables Directors' remuneration Dividends paid: Ordinary shares Preference shares Furniture: At cost Accumulated depreciation Investment at cost Investment income Ordinary share capital Preference share capital Retained earnings Purchases Sales Share premium Inventory Wages and salaries 48 355 22 400 200 17 400 800 50 155 24 1.722 1.722 Additional information 1. The inventory at 31 May 2017 was valued at $195, 000. 2. Administrative expenses owing at 31 May 2017 amounted to K13, 000. 3. Depreciation is to be charged on furniture at a rate of 12.5% on cost. 4. Salaries and wages in advance amounted to $4,000. 5. Corporation tax was estimated to be $ 8,000 Required: a) In so far as the information permits, prepare the income statement for the year ending 31 May 2017 in accordance with the appropriate accounting standards. b) In so far as the information permits, prepare the statement of financial position as at 31 May 2017, in accordance with the appropriate accounting standards