Question 1 Assume you have just joined Happy Ltd as the company accountant. You replaced the former accountant who resigned abruptly. Before he resigned, he has prepared the statement of financial position.

Assume the account balance in the statement of financial position he has used are correct. Present a corrected statement of financial position. (20 marks)

Happy Ltd Statement of Financial Position for the Year Ended 31 December 2020 Assets Liabilities and Shareholders' Equity Cash 75,000 Share capital 120,000 Amount owed to others 45,000 Amount due from others 45,000 Unearned revenue 35,000 Allowance for doubtful accounts 10,000 Salary payable 10,000 Accumulated depreciation* 40,000 Inventory 20,000 Machinery 75,000 Profit for the year 75,000 Motor vehicles (MV) 120,000 *$12,500 is for Accumulated Depreciation, Machinery and $27,500 is for Accumulated Depreciation, Motor vehicles (MV)