QUESTION 1: The following trial balance has been extracted from the ledger of Quail Limited as at 31 December 2020 Debit 150,000 Credit f 655,000 340,000 80,000 45,000 150,000 18,000 3,500 66,000 9,500 41,500 Buildings at Cost Sales Purchases Plant and Machinery at Cost Trade Payables Wages and Salaries Computer Equipment at Cost Bank Inventory at 1 January 2020 Loan Interest Trade Receivables Retained Earnings at 1 January 2020 Long Term Loans Share Capital Motor Vehicles at Cost Operating Expenses Accumulated depreciation at 1 January 2020 Building Computer Equipment Motor Vehicles Plant and Machinery Cash in hand TOTALS 115,000 53,500 25.000 50,000 90,000 30,000 6,000 25,000 45,000 1,000 999,500 999,500 The following information is available for the year ended 31 December 2020 a) Inventory at the close of business on 31 December 2020 was 75,000 b) Wages of 9,000 for the December were due but had not been paid c) Operating expenses included 9,000 relating to the insurance for the period 1 March 2020 to 28 February 2021 d) Depreciation for the year has not yet been charged Buildings 1% straight line method Plant and Machinery 15% reducing balance method Motor Vehicles 20% reducing balance method Computer Equipment 25% reducing balance method e) Bad Debts of 500 need to be written off REQUIRED: a) Prepare a statement of Profit or Loss for Quail Limited for the year ended 31 December 2020. (12 marks) b) Prepare a Statement of Financial Position for Quail Limited as at 31 December 2020. (13 marks) (Total: 25 marks) QUESTION 2