Question 1 Statements (16 marks) The adjusted trial balance and some additional information for Northern Electronics Limited appears below NORTHERN ELECTRONICS Adjusted Trial Balance December 31, 2019 Debit Credit Cash $ 23,000 Accounts receivable 9,500 Merchandise inventory 30,000 Equipment 18,000 Accumulated depreciation-equipment $ 4,800 Accounts payable 15,200 Common shares 8,100 Retained earnings 21,150 Dividends 1,600 Sales revenue 725,000 Sales Discounts 7,500 Purchases 475,000 Purchase Returns and allowances 3,500 Freight in 10.100 Salaries and Benefits expense 177,600 Office supplies expense 14,500 Depreciation expense 3,000 Income Tax expense 7950 $777.750 $777.750 Additional Information: 1. Northern uses a periodic inventory system. Inventory January 1, 2019 was $30,000 2. The inventory count on December 31, 2019 was $40,000 3. There were no Common Share transactions during the year. 4. Retained earnings December 31, 2018 were $21,150. Instructions For the year ended December 31, 2019: (a) Prepare a multi-step income statement: (7 marks) (b) Prepare a statement of financial position: (5 marks) (c) Prepare a statement of changes in equity (4 marks)