Question 1 The following information is the preliminary trial balance of Kingsla Motors PLC for year ending of 31st of December 2020: Debits () Credits () Sales 160,000,000 Property Goodwill 55,000,000 15,000,000 25,000,000 Intangible Assets (e.g. Patents, Trademarks)) Advertising Purchases Land 6,000,000 60,000,000 15,000,000 2,000,000 25,000,000 32,000,000 Pre-paid Advertising Cash and Cash Equivalents Inventories (at the 1st of January 2020) Accrued Bank Interest 100,000 Staff Wages Management Salaries 20,000,000 4,000,000 5,000,000 28,000,000 14,000,000 10,000,000 120,000,000 Trade Receivable Fixture and Fittings - Historic Cost Fixture and Fittings - Accumulated Depreciation Pension Liability Tools and Equipment - Historic Cost Tools and Equipment - Accumulated Depreciation Share Capital (100) Rent Received (additional warehouse space) Bank Interest Expense Retained Earnings General and Administrative Expenses 80,000,000 50,000,000 2,000,000 10,000,000 58,000,000 9,000,000 Share Premium 20,000,000 Trade Payables 4,900,000 Assembly Line Machine - Historic Cost 100,000,000 Assembly Line Machine - Accumulated Depreciation Asset Revaluation 67,000,000 5,000,000 60,000,000 531,000,000 Bank Loan 531,000,000 1) Adjustments Closing inventories was 30,000,000 on the 31st of December 2020. 2) Corporation tax is 25% for the year, half due now in cash and half due in April 2021. 3) Property was revalued from 55,000,000 to 70,000,000. 4) A court case of a present obligation is being settled (within a year) and therefore regarded as being probable, with Kingsla Motors PLC needing to pay a competitor for copyright infringements at a reliably estimated amount of 25,000,000. 5) Depreciation (all based on reducing balance): a) Fixture and Fittings - 15% 6) Amortisation/Impairment: a) 3,000,000 of inventories need to be written off as they've been deemed obsolete (not yet included in stock figure) 7) 2,000,000 of intangibles assets were purchased using cash. 8) Dividends were distributed to shareholders during the financial year to a value of 3,000,000 in cash. 9) A 1 for 4 bonus issue was given to shareholders. The bonus issue was conducted before the rights issue. 10) A rights issue of 5 for 2 basis, at 300 per share, with 50% of shares bought by shareholders. REQUIRED Please prepare a balance sheet and income statement for 31st December 2020 using the trial balance presented on the previous page, ensuring that you make all the requested adjustments