Question 2: Financial Statements (20 marks) This following information relates to a sole trader called Confidence Traders. The financial year end is February 2022. INFORMATION (Please see table on the next page) PRE-ADJUSTED Trial Balance on 28 February 2022 Balance Accounts Section Debit Credit Capital 775 694 Fixed assets at carrying value [01/03/2021] 942 260 Loan: Emperors Bank [17% p.a.] 114 000 Fixed deposit: Diamond Bank [9% p.a.] 240 000 Trading Inventory 75 000 Debtors control 86 780 Provisions for bad debts 4 500 Bank 54 000 Cash float 2 000 Petty cash 800 Creditors control 165 300 Creditors for salaries 13 786 SARS: PAYE 15 000 Pension fund 12 780 Nominal Accounts Section Sales 1 775 500 Cost of sales 1 055 000 Debtors allowances 110 000 Rent income 169 000 Salaries 181 000 Wages 127 770 Bad debts 5 150 Insurance 27 800 Audit fees 44 000 Consumable stores 24 000 Interest on current account 4 100 Discount allowed 8 500 Discount received 3 200 Sundry expenses 68 800 3 052 860 3 052 860 Adjustments and Additional Information The accounting officer is paid the same remuneration per month for the whole year. Outstanding accounting fees owed amounted to R4000. Physical stocktaking of inventories on 28 February 2022 revealed the following: Consumable items to the value of R22 220 were used during the year. Trading inventory showed a surplus of R5 500 Received a cheque for R7 620 from the insolvent estate of a debtor. His estate paid a first and final dividend of R0.30 in the rand. No entries have been made. The provision for bad debts must be decreased to R2 800. An insurance contract for R15 600 was taken out for the period 1 September 2021 to 31 August 2022. Depreciation of R45 000 on tangible assets must be provided for, for the year. Provide for outstanding interest for the loan obtained from Emperors Bank for February 2022. Interest on fixed deposit from Diamond Bank needs to be provided for February 2022. Rent was received for one month in advance. Adjust accordingly. Confidence Traders received a commission income of R50 000. REQUIRED Prepare the Statement of Comprehensive Income of Confidence Traders for the year ending 28 February 2022. (20 Marks)