QUESTION 1 (CLO 4) The following trial balance was extracted from the books of M. Beetleman as at 31 May 2020. DR CR 83,940 43,820 10,320 8,700 14,400 Purchases and Sales Opening stock at June 1, 2019 Bank overdraft Capital Cash Discounts Return inwards Return outwards Carriage outwards Carriage inwards Rent and Rates Provision for bad debts Machinery 180 2,880 1,620 1,920 1.140 4,320 1,900 3,480 3,400 6,200 Van 2,000 1,000 12,120 23,820 Provision for depreciation on Vans Provision for depreciation on Machinery Accounts Receivable and Payables Drawings Wages and Salaries General office expenses 5,760 17.880 960 126,540 126,540 Notes: a. Closing stock $9500 b. Wages and salaries: accrual $420; Office expenses accrued $40 C. Rent and rates prepaid $480 d. Increase the provision for bad debts to $1620 e. Provision for depreciation Van 10% of cost, and Machinery 15% on the reducing balance method. Prepare: (a) An income statement for the year ended 31 May 2020. (20 marks) (b) A Balance Sheet as at May 31, 2020. (20 marks) [Total 40 Marks