Question 1 The following trial balance was extracted from the books of Birmingham Services Ltd for the year ended 31 December 2018: Dr Cr f f Bank 5,600 Overdraft 6,200 Capital 122,250 Acc. Depreciation (at 1st April 2017) Office Equipment 25,000 Vehicles 12,000 Drawings 28,000 Electricity 8,000 Office expenses 54,000 Office equipment, at cost 70,000 Rates 32,500 Purchases 570,500 Sales 830,000 Inventory (at 1st April 2017) 49,000 Trade Payables 35,600 Trade Receivables 78,800 Vehicles at cost 30,600 Wages and salaries 104,050 1,031,050 1,031,050 Continued.. Page 2 of 12 2003FIN-R Additional Information: : a) Inventory at 31st March 2018: 67,500. b) Amount owing for rates at 31st March 2018; 3,550 At 31st March 2018 the company had paid 17,200 in advance for wages and salary d) Depreciation is to be charged on reducing balance method. The depreciation rates are: office equipment 25% vehicles of 25% Required: a) Prepare an Income Statement for the year ended 31st December 2019. (19 Marks) b) Prepare a Statement of Financial Position as at 31st December 2019 (19 Marks) C) Presentation, terms and layout. (2 Marks) (Total 40 Marks)