Question 1 The following are the unadjusted ledger balances of Sofia Limited for the year ended 31 December 2022: $ Ordinary Share Capital 150,000 Sales 140,000 Trade payables 8,940 Purchases returns 180 Purchases 28,000 Sales returns 121 Carriage outwards 124 Carriage inwards 110 Rental expense 25,000 Insurance expense 9,400 Advertising 12,820 Salaries 10,000 Cash at Bank 5,845 Opening Inventory 2,700 Trade Receivables 10,000 Plant and Equipment at cost 150,000 Accumulated Depreciation (1st January 2022: Plant and Equipment) 15,000 Motor Vehicles at cost 60,000 Additional information needed for year-end adjustments, are as follows: Insurance for January 2023 $1,500 Closing Inventory, at 31 December 2022 $3,100 Irrecoverable debts to be written off $400 Rental owing as at 31 December 2022 $12,000 Depreciation for the year - Plant and Equipment $15,000 Depreciation for the year - Motor Vehicles 20% on cost Required: a. Prepare an Income Statement for the year ended 31 December 2022. [10 marks] b. Prepare a Statement of Financial Position as at that date