Question 1 The following information is the preliminary trial balance of Alpha Petrol Station Ltd for the year ended 31st December 2019. Debits (L) Credits (E) 10,000,000 Sales Land 1,800,000 552,500 3,700,000 700,000 590,000 12,500 4,000,000 450,000 120,000 75,000 500,000 280,000 Cash Property Inventories (at the 1st of January 2019) Tools and equipment Accrued Administrative Expense Purchases Staff Wages Administrative Expense Accrued Staff Wages Bank Loan General Operating Expenses Loan Interest Received Rent Received (additional storage space) Management Salaries Goodwill Plant and machinery Trade Payables Trade Receivables Fixtures and Fittings Share Premium Account Share Capital (E1 nominal) Revenue Reserve - Retained Earnings Capital Reserve - Asset Revaluation 40,000 25,000 560,000 450,000 440,000 120,000 720,000 650,000 2,000,000 1,000,000 920,000 320,000 15,012,500 15,012,500 Adjustments 1) Closing inventories was 500,000 on the 31st of December 2019. 2) Corporation tax is 20% for the year, 50% due in April 2020. 3) Depreciation (all based on reducing balance): a) Tools and equipment - 20% b) Plant and machinery - 10% c) Fixture and fittings - 5% 4) Amortisation/Impairment: a) Goodwill - to be impaired at a cost of 250,000 for the year. 5) Land was revalued from 1,800,000 to 2,000,000. 6) Property was purchased for 500,000 in cash. 7) Dividends were distributed to shareholders during the financial year to a value of 420,000 in cash. 8) A rights issue of 4 for 1 basis, at 2.50 per share, with 75% of shares bought by shareholders. REQUIRED Please prepare a balance sheet and income statement for 31st of December 2019 using the trial balance presented on the previous page, ensuring that you make all the requested adjustments