QUESTION 3 REQUIRED Use the trial balance, additional information and adjustments given below to prepare the Statement of Comprehensive Income of Selfie Limited for the year ended 28 February 2018 FINANCAL STATEMENTS OF A COMPANY SELFIE LIMITED PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2018 Debit Balance sheet accounts section Ordinary share capital 416 000 121 700 Land and buildings at cos Equipment at cost Vehicles at cost 480 000 213 000 175 000 88 000 44 000 45 000 Provision for bad debts Bank overdraft Creditors control Loan: Pano Bank (18% South African Revenue Services (Company t Nominal accounts section 3 000 14 600 65 000 50 000 2 800 936 000 Cost of sales 356 000 24 000 12 000 2 000 3 000 Bad debts Discount allowed Discount received Electricity and water 3 000 37 000 20000 500 Interest on overdraft Directors' fees Audit fees 12 000 5000 Rent income Municipal rates 26 000 1. According to physical stocktaking, the following inventories were on hand on 28 February 2018 Tradine inventoryR42 000 Stationery R1 000 2. Advertising includes a payment of R6 000 for advertisements that will be published monthly for the period 01 January 2018 to 30 June 2018. 3. Part of the building has been let to a tenant since 01 March 2017. Rent amounts to R2 000 per month. Make the necessary adjustment 4. Write off the account of debtor, P. Paul, R300. 5. The provision for bad debts must be decreased to R2 500. 6. Directors' fees have been paid up to 31 January 2018. A third director was employed from 01 February 2018. The three directors earn the same remuneration. Provide for the fees still due 7. The loan from Pano Bank was obtained on 01 February 2018. Provide for the outstanding interest on loan. 8. A notice from the municipality indicated that the rates assessment for the year ended 28 February 2018 has been finalised and it amounts to R24 000 for the financial year 9. Provide for depreciation as follows: On vehicles at 20% per year using the diminishing balance method. On equipment at 15% per year on cost. 10. The company tax for the year ended 28 February 2018 amounts to R40 140