Question $1$

Carnival Company is involved in the wholesaling and retailing of office supplies. The accountant resigned immediately after the following trial balance was extracted from the books of the company as at December $31,2009,$ the end of the company's fiscal year.

$\backslash$table$[[$Account tittles,Debit $($$$),$Credit $($$$)],[$Cash$,50100,],[$Account receivable,$128100,],[$Allowance for doubtful debts,,$27000],[$Merchandise Inventory,$114000,],[$Stores Supplies,$16500,],[$Investment$,285000,],[$Store equipment,$255000,],[$Accumulated Dep$-$ Store Equipment,,$54000],[$Delivery Equipment,$144000,],[$Accumulated Dep$-$ Delivery Equipment,,$27000],[$Account Payable,,$145500],[$Utilities Payable,,$8400],[$Notes Payable,,$180000],[$Invested ordinary Capital,,$120000],[$Share Premium,,$210000],[$Retained Earnings,,$102750],[$Sales$,,2273400],[$Sales return and allowance,$12600,],[$Purchase$,1384800,],[$Purchase returns, allowance and discounts,,$44400],[$Rent and utilities expenses,$114000,],[$Freights$-$in$,32400,],[$Salaries expense,$420000,],[$Advertising expenses,$39600,],[$Delivery expenses,$72000,],[$General Expenses,$64350,],[$Interest expenses,$48600,],[$Loss due to flood,$11400,],[,3192450,3192450]]$

An accounts clerk prepared the following additional information that should be considered in preparing the financial statements:

Store supplies on hand totaled $$8000$ at the end of the period

Depreciation is charged on all fixed assets at the rate of $20$ per cent per annum using the reducing balance basis.

Merchandise inventory on hand at December $31,2009$ is $$120000.$

Bad debts expense is estimated at $2$ per cent of net sales.

Salaries expense is $60$ per cent selling and $40$ percent administrative.

Rent and utilities expense is $70$ per cent selling and $30$ percent administrative.

$$100000$ of the notes payable is due for payment the following year.

General expense is $100$ percent administrative.

The corporation tax rate is $30$ per cent.

Accounts receivable includes $$5500$ due from a customer who went into liquidation on December $15,2009.$

The company suffered minor losses due to seasonal flooding.

The investments are government bonds that will mature on December $1,2020.$ The bonds pay $8$ percent interest annually and were acquired in $2006.$

You have just been hired and given the trial balance and additional information above.

The directors of the company need a set of financial statements for their board meeting.

Prepare a Statement of Comprehensive Income and Statement of Financial Position for Carnival Company for the year ending December $31,2009.$