Question 1 Remington's Prints Ltd publishes magazines and writing materials. The following trial balance has been prepared as at 31 December 2019: Unadjusted Trial Balance for Remington's Prints Ltd year ending 2019 CREDIT DEBIT 1,153,875 100,055 2,055,000 93,550 125.000 142,600 80.000 55,000 12,500 343,525 Purchases Inventory at 1 January 2019 Sales Distribution costs Rent Administrative and selling expenses Salaries and wages Trade receivables Carriage inwards Bank balance Share Capital account Discount received Land 6% Bank loan Building at cost Provision for depreciation - Building Motor vehicles Provision for depreciation - vehicles Retained earnings at 1 January 2018 Loan interest paid Dividends paid Trade payables 1.130,000 6,055 130,000 400,000 1,750,000 175.000 36000 12,000 249,050 10.000 35,000 40,000 4,067,105 4,067,105 The following adjustments need to be made to the accounts: 1. Inventory valuation at 31 December 2010 was 53,930 2. Building depreciation of 175,000 has not yet been included for 2019 Land 6% Bank loan Building at cost Provision for depreciation - Building Motor vehicles Provision for depreciation - vehicles Retained earnings at 1 January 2018 Loan interest paid Dividends paid Trade payables 130,000 400,000 1.750,000 175,000 36000 12.000 249,050 10,000 35,000 40,000 4,067,105 4,067,105 The following adjustments need to be made to the accounts: 1. Inventory valuation at 31 December 2019 was 53,930 2. Building depreciation of 175,000 has not yet been included for 2019 3. Vehicles are to be depreciated at 30% per annum, reducing balance method 4. Wages owing at the end of December are 5,000 5. The allowance for doubtful debts is to be set at 2% of trade receivables 6. The balance owing for the loan interest has been paid but not included in the accounts Required: a) Prepare the statement of profit or loss for the year ended 31 December 2019 for Remington's Prints Ltd b) Prepare the statement of financial position as at 31 December 2019 for Remington's Prints Lid