Question 1 (50 marks) Susan has been trading fashionable sport accessories for some years. The following list of balances has been extracted from the ledger of Susan Sport Accessories Limited as at December 31, 2021. Advertising Expenses Bank Charges And Interest (included bank loan interest) Cash On Hand Creditors Debtors Electricity Charged And Paid Fixtures & Fittings At Cost Office Equipment At Cost Accumulated Depreciation - Fixtures & Fitting At January 1, 2021 Accumulated Depreciation Office Equipment At January 1, 2021 Postages And Stationery Purchases Rent, Rates And Insurance Retained Earnings At January 1, 2021 Salaries And Wages Sales Share Capital Stock At January 1, 2021 5 Years Bank Loan (Interest Rate Of 15% Per Annum) (S) 246,500 36,500 1,550 288,200 121,600 57,000 108,000 32,400 85,000 12,750 12,800 1,684,500 69,600 12,800 375,600 2,000,000 400,000 47,500 100,000 The following additional information as at December 31, 2021 includes: 1. 2. 3. 4. 5. Stock of sport accessories at December 31, 2021 was valued at $435,000. Rates was paid in December 2021 in advance for January to March 2022 - $9,800. A customer has failed to make payment of $23,300 for a long time. It deemed as bad debts as at December 31, 2021. An electricity bill of $8,400 for November and December 2021 was received. This bill has not yet been settled until February 2022. Depreciation of fixture & fittings: 20% per annum on straight line basis. 6. Depreciation of office equipment: 10% per annum on straight line basis. Required: Prepare a Profit and Loss Account for the year ended December 31, 2021 and a Balance Sheet as at that date. (a) (b) Give comments on the above information given. (30 marks) (20 marks) Entrepreneurial And Financial Strategies In Sport And Recreation-Assignment 1 (2022) 2 Page