Q4 (20 marks) The following table contains the adjusted trial balance of BTS Clothing Inc. for the year ended December 31, 2020. Debit Credit Cash 14,000 Accounts receivable 32,000 Inventory 88,500 Prepaid rent 1,800 Equipment 52,000 Accumulated depreciation equipment 14,000 Building 150,000 Accumulated depreciation building 22,000 Land 46,000 Accounts payable 42,000 Wages payable 12,550 Income taxes payable 22,500 Retained earnings 158,770 Dividends declared and paid 45,000 Share capital 1,000 Sales revenue 721,980 Wages Expense 400,000 Interest revenue 2,850 Advertising expense 52,850 Other expenses 48,000 Professional fees expense 17,500 Bank charges and interest expense 12,000 Depreciation expense 18,000 Income tax expense 20,000 Total 997,650 997,650 9 1. Please prepare a statement of earnings using a single step approach for BTS Clothing Inc. for the year ended December 31, 2020 in proper financial statement format. (6 marks) 2. What is the ending balance of Retained Earnings at December 31, 2020? (2 marks) ______________________ 10 3. Please prepare a statement of financial position for BTS Clothing Inc. as at December 31, 2020 in proper financial statement format. (12 marks).