Question 1 [40 Marks) The following list of Balances has been extracted from the ledger accounts of Tristan PLC as at 30 April 2017, the end of the most recent financial year. Debit () Credit () 1 Ordinary Share Capital 80.000 Share Premium 3,887 Purchases and Sales 135,680 259,870 Trade Receivables (Debtors) and 24,500 19,840 Trade Payables (Creditors) Retained Earnings 13,407 Allowance (Provision) for Doubtful 512 Debts Discounts Allowed and Received 2,306 1,750 Returns Inwards 5,624 Carriage Outwards 4,562 Dividends paid 3,440 Carriage Inwards 11,830 Rent, Rates and Insurance 25.973 Heating and Lighting 13,420 Director's Remuneration 5,980 Salaries and Wages 38,521 Bad Debts 3,108 Bank 30,948 Inventory (Stock) as at 1 May 2016 15,654 Motor Vehicles at Cost 50,000 Accumulated (Provision for) 10,000 Depreciation on Motor Vehicles Fixture and Fittings at Cost 70,740 Accumulated (Provision for) 53,020 Depreciation on Fixtures and Fittings 442,286 442.286 The following additional information is available as at 30 April 2017: 1) Inventory (Stock) was valued at 17,500 2) The corporate tax of 1,300 is due to be paid. 3) The Allowance (Provision) for Doubtful debts is to be set at 5% of net Trade Receivables (Debtors) 4) Motor Vehicles are to be depreciated at a rate of 10% using the reducing balance method and Fixtures are to be depreciation at a rate of 15% using a straight-line method 5) The company received a bank loan of 50,000 which was transferred to the business bank account on the same day. 6) Rates prepaid amounted to 5,400 Required: a) Prepare the Income Statement for the year ended 30 April 2017 b) Prepare the Statement of Changes in Equity for the year ended 30 April 2017 c) Prepare the Statement of Financial Position (Balance Sheet) as at 30 April 2017