QUESTION 2 (20 MARKS) REQUIRED Use the information provided below to prepare the Statement of Financial Position of Trent Limited as at 31 July 2023. The notes to the financial statements are not required. INFORMATION TRENT LTD Extract of PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 JULY 2023 Balance Sheet Accounts Section Debit (R) Credit (R) Ordinary share capital (200 000 shares) 4 000 000 Retained earnings 589 200 Land and buildings 3 904 100 Vehicles (cost) 1 400 000 Equipment (cost) 900 000 Accumulated depreciation on vehicles 510 000 Accumulated depreciation on equipment 397 000 Debentures (12% p.a.; Maturity date 31 July 2028) 1 700 000 Investment (25 000 shares in ABC Limited) 500 000 Trading inventory 1 090 000 Debtors control 360 000 Provision for bad debts 30 000 Bank 287 000 Creditors control 484 000 South African Revenue Services: Company tax 140 000 Adjustments and additional information The profit after tax for the year ended 31 July 2023 amounted to R392 100. The following adjustments were made to the income and expenses but not to the balance sheet accounts: 1. A physical stocktake on 31 July 2023 revealed the following: 1.1 Trading inventory on hand amounted to R1 050 000. 1.2 Stationery unused amounted to R2 000. 2. Rent for August 2023 was received and recorded on 31 July 2023, R14 000. 3. Dividends of 70 cents per share are due from ABC Limited. 4. Commission on sales of R30 000 is owed to the salespersons. 5. Equipment, cost price R120 000, was purchased on credit on 01 July 2023 but no entry has been made for this. Depreciation on equipment is calculated at 15% p.a. on cost and on vehicles at 20% p.a. on the diminishing balance. 6. The bank statement was received after the trial balance was prepared and it reflected bank charges of R1 800. 7. The provision for bad debts must be adjusted to 5% of debtors. 8. Two of the directors of the company are owed remuneration of R20 000 each. 9. Based on the profit for the year, an amount of R30 000 is still owed to South African Revenue Services for company tax. 10. The directors declared a final dividend of 12 cents per share. The interim dividend amounted to R100 000.