Question 1. (30 marks) Mango Stores financial year ends on 31 December each year. On 31 December 2019, the owner of Mango Stores needed the financial statements in order to see how the entity has performed during the current financial year. Unfortunately, the bookkeeper of Mango Stores was sick and was not able to prepare the financial statements. The following list of accounts balance was provided to you by the bookkeeper as at 31 December 2019. CR NS 141.700.00 Mango Stores Trial Balance as at 31 December 2019 DR N$ Capital Land and buildings at cost 263,240.00 Motor Vehicles (Cost price N$40 000) 28,800.00 Equipment (Cost price N$9 000) 7.290.00 Long-term Investment ABSA Bank (12%) 50,000.00 Inventory 8,880.00 Accounts receivable 11,200.00 Cash and cash equivalents 3.700.00 Accounts payable Long-term loan: 15% Allowance for credit losses Sales Cost of sales 165.400.00 Salaries and wages 27.000.00 Credit losses 550.00 Insurance 2.250.00 Water and electricity 3,500.00 Advertisements 2,000.00 Rent income Interest on investment 573,810.00 10.110.00 25,000.00 300.00 375,100.00 15,600.00 6,000.00 573,810.00 The following transactions must still be taken into account 2 1. The long-term loan was entered into on 1 July 2019. According to the agreement interest will be payable at the end of the each financial year on 31 December 2. Advertisement includes an amount of N$400 paid for January next year. 3. Insurance amounting to N$750 was still outstanding at the end of the current financial year. 4. Mango Stores depreciates all the non-current assets using the reducing balance method at a rate of 10%. Land and buildings are not depreciated. Depreciation for the current year is yet to be accounted for 5. Adjust the allowance for credit losses to 5% of outstanding receivables. Required: a) Prepare the Statement of Profit or loss of Mango Stores for the year ended 31 December 2019 (14) b) Prepare the Statement of Financial Position of Mango Stores as at 31 December 2019.(16) Show all workings