Question 5 [26] FINANCIAL STATEMENTS ADJUSTMENTS Antonius is the owner of Vespasian Enterprises, a linen shop that has been trading for the past 5 years. Vespasian Enterprises uses the periodic inventory system to record their inventory. The entity is NOT a registered VAT vendor. According to the accounting policies of the entity, depreciation must be provided for at 20% on motor vehicles, using the reducing balance method, and 15% on equipment, using the straight- line method. At the end of each year, the provision for credit losses must be adjusted to 1% of total outstanding debtors. The pre-adjustment trial balance on 31 December 2019 was extracted from the records of Vespasian Enterprises TRIAL BALANCE AS AT 31 DECEMBER 2019 DR CR Capital 366 400 Drawings 5 500 Land and buildings 353 000 Motor vehicles 135 000 Accumulated depreciation: Motor vehicles 35 000 Equipment 56 000 Accumulated depreciation Equipment 6 000 Debtors control 34 500 Allowance for credit losses 50 Creditors control 44 500 Leon Trading inventory (1 January 2019) 45 000 Bank 53 500 Sales 460 000 Rent received 33 500 Commission income 14 000 Sales returns 13 500 Purchases Purchases returns Credit losses Electricity Insurance Printing and stationery Salaries and wages Telephone 166 550 35 000 3 000 17 350 15 550 35 500 50 000 10 500 994 450 994 450 Additional information (not yet considered): 1. Inventory on hand on 31 December 2019 amounts to R60 000 2. Rental income due for December 2019, R2 390, has not been received yet 3. An amount of R1 500, being the insurance for January 2020, is included in the insurance expense. 4. Telephone for December 2019, R3 450, has not been paid yet. 5. Commission for January 2020, R3 500, was banked during December 2019. 6. The profit AFTER the above adjustments amounts to R213 795. Required: Prepare the statement of financial position of Vespasian Enterprises as at 31 December 2019