QUESTION 1 REQUIRED Use the information provided below to prepare Statement of Comprehensive Income of Taurus Limited for the year ended 28 February 2023 and Statement of Financial Position as at 28 February 2023. INFORMATION The trial balance and additional information given below were extracted from the accounting records of Taurus Limited on 28 February 2023, the end of the financial year. TAURUS LIMITED PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 February 2023 Debit (R) Credit (R) Balance sheet accounts section Ordinary share capital 250 000 Retained income 36 320 Vehicles at cost 370 000 Equipment at cost 273 000 Accumulated depreciation on vehicles 156 000 Accumulated depreciation on equipment 109 200 Fixed deposit: Nami Bank (10% p.a.) 58 400 Trading inventory 32 000 Debtors control 37 700 Bank 63 560 Petty cash 1 800 Creditors control 54 180 SARS Income tax 25 000 Mortgage loan: Nami Bank (15% p.a.) 96 000 Nominal accounts section Sales 882 380 Cost of sales 329 000 Sales returns 14 800 Salaries and wages 144 600 Rent expense 59 800 Directors fees 85 000 Audit fees 29 740 Telephone 17 200 Electricity and water 19 800 Bank charges 3 200 Insurance 2 800 Interest on mortgage loan 10 800 Commission income 2 920 Stationery 8 800 1 587 000 1 587 000 Page 2 of 4 Adjustments and additional information 1. Stationery purchased for the next financial year amounted to R400. 2. The investment in fixed deposit was made on 28 February 2023. 3. Provide for outstanding interest on mortgage loan, R3 600. 4. Included in the insurance total is an amount of R900 that was paid for fire insurance for the next financial year. 5. The water and electricity account for February 2023 was due to be paid on 03 March 2023, R2 000. 6. Rent has been paid for the period 01 March 2022 to 31 March 2023. 7. The bank statement for February 2023 reflected an amount of R360 for bank charges. No entry has been made for this. 8. Provide for depreciation as follows: 8.1 On vehicles at 20% per annum on the reducing balance. 8.2 On equipment at 10% per annum using the straight-line method. 9. The income tax for the year ended 28 February 2023 amounted to R26 880