Question 2 The following is the trial balance of Pelangi , a public listed company at 30 September 2020 Debit $000 Credit $000' 200,000 25,000 240,000 20,000 66,900 9,100 10,730 4,000 11,200 12,300 7,800 215,250 Issued Share Capital Equity Shares of $ 2 each 7% Non Equity Preference Shares of $ 0.85 each Building Goodwill Plant and Machinery (cost $ 80,000) Furniture (cost $ 13,000) Inventory 1 October 2019 Equipment Trade receivables and trade payables Bank overdraft Purchase and sales revenue Director salaries Rates Electricity Interest on debenture Preliminary expenses 10% Debenture Provision for bad debts Share premium Retained Earnings Land Revenue Reserves Interim dividend on equity shares Audit fees Revaluation Reserves Bad Debts Listed Investment Investment Income 49,700 22,000 4,650 3,830 1,200 1,270 24,000 910 35,000 2,580 80,000 10,200 4,520 1,750 9,860 700 12,000 650 543,550 543,550 Additional Information: (a) (b) (c) Inventory at 30 September 2020 is valued at $25,900,000. Rates include a payment of $ 3,300,000 for the six months from 1 August 2020. Included in the cost of equipment that was purchased on 1 February 2020. The amount that has been included comprises the following: Basic price Installation cost Annual Insurance Testing the equipment Repair cost due to break down 3,295,000 100,000 200,000 400,000 5,000 4,000,000 (d) Depreciation are as follows:- Plant and machinery is at 15% p.a based on reducing balance method. Furniture is at 10%p.a on straight line method Building purchased on 1 March 2020, is depreciated over 50 years using straight line method. Equipment is at 15% on straight line method. (e) (1) (9) Provision for bad debts for the year end September 2020 is estimated at $1,142,000. The preference share dividends are outstanding at the end of the year and the last half years interest on debenture has not been paid. The corporation tax on this year's profit is $17,800,000. The directors propose to declare a final dividend on the equity share of 10 cents per share and transfer $4,000,000 to revenue reserves. Land was revalued by $2,000,000 on 1 October 2019. (1) Required: Prepare the Income Statement of Pelangi for the year ended 30 September 2020 and a Statement of Financial Position as at that date for internal use only. (show clear workings for the adjustments) (25 marks)