Question 1 - (Total 25 marks) Rex Plc prepares its financial statements to 31 December each year. At 31 December 2020 its trial balance was as follows: Debit 000 420 Credit 000 600 720 348 230 290 550 360 Administration expenses Ordinary shares of 1 each, fully paid Trade and other receivables Cash and cash equivalents Share premium Distribution expenses Property Plant and equipment Depreciation on plant and equipment at 1 January 2020 Retained earnings at 1 April 2019 Purchases Bank loan (4%) Inventory at 1 April 2019 Trade and other pavables Revenue Dividends paid 108 90 620 380 180 360 1,800 80 3,568 3,568 Further information: Inventory at 31 March 2020 cost 120,000 The tax charge based on the profits for the year is 80,000 The interest on bank loan is tax free for first three months for the year, and it has not been paid The property is to be revalued at 700,000 Depreciation of plant and equipment is to be provided for the year at 10% on a straight-line basis. Administration expenses is prepaid by 40,000 Required to prepare: i. the income statement for year ending 31/12/20 (9 marks) and ii. the statement of changes in equity for the year ended 31/12/20 (5 marks) and iii. the Balance Sheet as at 31/12/20 (11 marks)