Question 3 (15 marks): PART A (10 marks) Prepare the financial statements for Supershine for the year ended 31" December 2017. A trial balance as at 31 December 2017 is shown below: Dr. Cr. E E000 Sales 65,000 Purchases 40,000 75,000 Property, plant and Equipment - Cost Property, plant and Equipment - Accumulated Depreciation Inventories as at 1 January 2017 35,000 8,500 Interest expense 300 Accruals 600 Distribution costs 7,500 Administrative expenses 6,000 Retained earnings as at 1 January 2017 23,000 Trade receivables 9,000 Cash at bank 1,500 8% bank loan repayable 2021 6,000 Share capital: ordinary @1 nominal value 11,200 Share premium 4,000 Trade payables 3,000 147,800 147,800 Additional information provided to you: a) Management decided not to distribute divided for this year. b) 900,000 included in sales figure is on credit and is for the month of January 2018. c) Closing inventories amounted to 6,800,000. In this amount, inventories cost 300,000, but can be sold for only 150,000. d) 130,000 transportation cost is not included in the trial balance, since the invoice was received after the year end. e) Interest expense for the last 6 months has not been included. f) Corporate tax rate is 30% of taxable income. Given the above information, now prepare the statement of comprehensive income for the year ended 31" December 2017 and the statement of financial position as at that date. PART B (5 marks) Define the five elements of financial statements. Also explain the circumstance in which an element should be recognized in the financial statements