QUESTION 2: Financial Statement (40 marks) In your role as a Graduate Accountant at Crase & Stone Accounting Services you have been supplied with the following adjusted Trial Balance for Lounge Around Furniture Market, prepared at the end of the financial year by the business owner, Chaz Lounge. REQUIRED: Using the Trial Balance provided below, prepare the following for the period in question: a) Fully classified Income Statement [20 marks) b) Statement of Changes in Equity [4 marks] c) Fully classified Balance Sheet (Narrative format) [16 marks] Lounge Around Furniture Market Adjusted Trial Balance For the year ended 30 June 2021 Credit ($) Debit ($) 50,600 53,900 23,056 1,100 1,694 27,500 9,922 15,840 5,456 4,950 17,600 660 36,960 43,835 20,350 Cash at Bank Accounts Receivable Inventory (30 June 2021) Allowance for Doubtful Debts Prepaid Advertising Shop Furniture & Fittings Accumulated Depreciation - Shop Furniture & Fittings Sales Equipment Accumulated Depreciation - Sales Equipment Advertising Payable Accounts Payable Interest Payable Loan Payable C. Lounge - Capital (1 July 2020) C. Lounge - Drawings Sales Sales Returns & Allowances Discount Received Electricity Expense COS Depreciation Expense - Shop Furniture & Fittings Depreciation Expense - Sales Equipment Freight Inwards Rent Expense Discount Allowed Salaries Expense -Store Advertising Expense Interest Expense Doubtful Debts Expense Salaries Expense - Admin Totals 605,209 9,493 3,410 1,760 424,831 3,905 3,168 3,102 32,230 4,070 36,740 616 517 1,100 14,630 729,102 729,102 . Chaz has provided the following additional information to assist you with your statement preparation: $6,500 of the Rent expense specifically relates to the administration office. The remainder of this expense relates rent on the store. 20% of the Electricity expense specifically relates to the administration office. The remainder relates to electricity used in running the store. The Loan Payable was taken out over a term of 5 years