QUESTION 2 - Financial Statement Preparation (23 marks) "Tool Town" is a retail hardware store owned and operated by Alan Key. The following adjusted trial balance has been prepared at year end. TOOL TOWN ADJUSTED TRIAL BALANCE AS AT 30 JUNE 2021 Credit ($) Debit ($) 16,000 36,300 3,100 43,000 1,800 16,000 5,400 Cash Accounts Receivable Allowance for Doubtful Debts Inventory (1 July 2020) Prepaid Rent Equipment Accumulated Depreciation - Equipment Delivery Van Accumulated Depreciation - Delivery Van Accounts Payable Loan Payable A. Key, Capital (1 July 2020) A. Key, Drawings Sales 24,000 4,800 22,250 32,000 58,000 12,500 217,800 7,450 400 Sales Returns Discount Allowed Purchases Purchases Returns Discount Received 145,200 5,200 900 Freight Inwards Freight Outwards Sales Staff Wages Expense Depreciation Expense - Equipment Depreciation Expense - Delivery Van General Expense Doubtful Debts Expense Insurance Expense Advertising Expense Rent Expense 2,150 1,200 19,000 4,200 2,800 700 2,800 3,600 3,750 6,600 349,450 349,450 Alan has already prepared a basic Balance Sheet and Statement of Changes in Equity, however he has run out of time to prepare his Income Statement To assist you, Alan has provided the following additional information: . . Closing Inventory (as per stocktake) on 30 June 2021 was $44,500 40% of the Insurance expense specifically relates to the administration office. The remainder of this expense relates to insuring the store. $2,500 of the Rent expense specifically relates to the administration office. The remainder of this expense relates to rent of the store. REQUIRED: Question 2 a) - 10 marks Using the adjusted trial balance previously provided by Alan, prepare a fully classified Income Statement for Tool Town for the period in question using the template provided on the following page