Red-Mercury, a limited liability Company based in Kawambwa, has the following Trial balance as at 31 December 2022. The following additional information is relevant. (i) There are accrued carriage out wards of K146, 000 at 31 December 2022. (ii) It was discovered credit sales invoices valued at K2,000,000 for goods delivered to customers on 24 December 2022, had by mistake been dated 4 January 2023 and thus excluded from the sales for the year and from account receivables at the year end. (iii) Inventory at 31 December, 2022 was valued at K1,600,000. While doing the inventory count, errors in the previous year's inventory count were discovered. The inventory brought forward at the beginning of the year-should have been K2,200,000 not (v) A customer has gone bankrupt owing K76,000. This debt is not expected to be recovered and an adjustment should be made. (vi) 5% allowance for receivables is to be made. (vii) 1 million new ordinary shares were issued at a premium of K0.50 on 1 December 2022. The proceeds have been left in a suspense account. (viii) The charge for company tax for the year was estimated at K100,000. (xi) The Directors proposed K123,456 ordinary dividends. Required: (a) Prepare Statement of profit or loss for the year ending 31 December 2022. (b) Prepare Statement of Statement of. Changes in Equity for the (7 marks) 2022. (4 marks) (c) Prepare statement of financial position as at 31 December 2022. (9 marks) [Total: 20 Marks] customers on 24 December 2022, had by mistake been dated 4 January 2023 and thus excluded from the sales for the year and from account receivables at the year end. Inventory at 31 December, 2022 was valued at K1,600,000. While doing the inventory count, errors in the previous year's inventory count were discovered. The inventory brought forward at the beginning of the year should have been K2,200,000 not K2,400,000 as stated above. (iv) Depreciation is to be provided as follows: Buildings at 5% straight line, charged to administrative expenses Plant and equipment at 20% on the reducing balance basis, charged to cost of sales. Motor vehicles at 25% on the reducing balance basis, charged to distribution costs. 6 (v) A customer has gone bankrupt owing K76,000. This debt is not expected to be recovered and an adjustment should be made. (vi) 5% allowance for receivables is to be made. (vii) 1 million new ordinary shares were issued at a premium of K0.50 on 1 December 2022. The proceeds have been left in a suspense account. (viii) The charge for company tax for the year was estimated at K100,000. (xi) The Directors proposed K123,456 ordinary dividends. Required: (a) Prepare Statement of profit or loss for the year ending 31 December 2022. (7 marks) (b) Prepare Statement of Statement of Changes in Equity for the year ended 31 December 2022. (4 marks)