Question 1 [29 marks) The following is the Trial Balance for Rangnick Stores, a retail business located in Malvern Hills, as at 31 March 2022: Rangnick Stores Trial Balance as at 31 March 2022 Debit Credit Inventory (Stock) at 1 April 2021 160,500 Bank overdraft 202.150 Sales 832.100 Purchases 432,640 Carriage inwards 32.560 Returns inwards (Sales returns) 26.770 Returns outwards (Purchases returns) 25,120 Carriage outwards 24.610 Discount allowed 10,540 Interest expense 3,180 Rental income 86.900 Telephone charges 3.500 Maintenance costs 29.300 Wages and salaries 132,800 Marketing expenses 78,000 Discount received 15,000 Heating and Lighting 56,230 Insurance 35,850 Drawings 213,200 Long-term Loan 63,600 Land and Building 780,300 Equipment 85 230 Accounts receivable (Debtors) 104.700 Accounts payable (Creditors) 45,040 Cash 60,000 Capital at 1 April 2021 1.000.000 TOTAL 2,269,910 2,269,910 Additional information as at 31 March 2022: Inventory (Stock) as at 31 March 2022 was 97,600 PLEASE TURN OVER Required: a) Prepare the Income Statement for the year ended 31 March 2022. (14 marks) (11 marks) b) Prepare the Statement of Financial Position (Balance Sheet) as at 31 March 2022. c) Identify the accounting concepts or principles described below: (4 marks) i requires that an entity will prepare financial statements at regular intervals. ii. requires recording revenues when they are earned and not when they are received in cash. Similarly recording expenses when they are incurred and not when they are paid. lili. requires that assets are normally shown at cost price. iv. assumes that the business will continue to operate for the foreseeable future, at least 12 months after the end of the reporting period