Question 1 e The following information was taken from the books of Straker Ltd at 31st December 2019. Trial balance at 31st December 2019: e 4,601,150 1,575,200 11,340 23,800 18,200 12,360 54,600 512,300 2,000,000 340,250 102,000 750,240 32,600 Sales Purchases Discounts Allowed Discounts Received Sales Returns Purchase Returns Inventory at 1 Jan 2018 General Administration Expenses Ordinary Share Capital General Distribution Costs Rent Received Retained Profit Debtors Creditors 10% Debenture Debenture interest paid Provision for Doubtful Debts Land and Buildings Delivery Vehicles Office Furniture and Equipment Salaries Banke Provisions for Depreciation: Delivery Vehicles Office Furniture and Equipment General Reserve Share Premium 21,500 200,000 20,000 2,000 4,000,000 350,000 670,000 460,600 85,960 35,000 134,000 129,000 120,000 8,131,050 8,131,050 Inventory value at 31 December 2019 is 57,3004 Additional Information Accrual & Prepayment Adjustments Salaries - accrual General Distribution Expenses - accrual General Administration Expenses - prepayment 5,300 2,740 3,42042 Other Adjustments Provision for doubtful debt is to be reduced by fe 350 The directors have declared an ordinary share dividend of 51,0404 The directors have declared a transfer to the General Reserve of 18,000 4,100,000 Land & Buildings has been re-valued at The company policy is not to depreciate land and buildings Corporation tax on operating activities for the year is estimated at 83,000 Motor Vehicles are to be depreciated at 10% reducing balance Office Furniture & Equipment is to be depreciated at 10% straight line Wages & Salaries are to be divided between distribution, sales and adminstration expenses in the following ratio: Distribution expenses Sales and Marketing expenses Administration expenses 40% 10% 50% Task: Prepare an income statement for the year ending 31st December 2019, together with a statement of financial position at 31st December 2019 for Straker Ltd meeting the minimum standard requirements under UK GAAP. (Total: 60 marks) as at Balance Sheet of 1 ] 23 l 17 ] 23 67 ] ( 60| Total for Question 1: 10 11 120 129 121 | 120 123 120 129 120 21 for year ending Income Statement of