REQUIRED:  Complete the financial statements with the missing amounts and details. The entire statements must be submitted. Where applicable, show your workings in brackets. You may highlight your answers for the missing amounts or show them in bold print. The notes to the financial statements and Statement of Changes in Equity are not required. Do not type in the shaded areas.

QUESTION 1 (30 MARKS) Read the following case study and answer the question that follows: TRENDZ TRADERS Mr R. Nkosi, the sole proprietor of Trendz Traders, commenced trading on 01 March 2020. He employed five workers, including a bookkeeper. His first year of trading proved very successful. However, at the end of the first week of March 2022 his bookkeeper suddenly resigned. Mr Nkosi discovered that the financial statements for the year ended 28 February 2022 were still in the process of being prepared. He found that some of the amounts were already recorded in the financial statements, but it appeared that the bookkeeper did not make the annual year-end adjustments. Fortunately, the bookkeeper made the following list of adjustments that he intended using to prepare the financial statements: Stocktaking revealed the value of unsold goods amounted to R120 000. Stationery, R3 000, was purchased for use in the next accounting period. No entry was made to record an invoice received to replace a broken door, R1 000. An advertising contract at a cost of R2 500 per month for the period 01 December 2021 to 31 May 2022 was paid in full (for the stated period) on 01 December 2021. A debtor who was declared insolvent paid R2 100, which represented 60% of the amount owed. The amount that was received was recorded but the rest of his account must now be written off. The provision for bad debts must be adjusted to R10 250. Interest was still outstanding on the investment at Peri Bank which was made on 01 February 2021 and which matures on 30 June 2023. Interest on investment is not capitalised. The interest on loan from Peri Bank was accurately calculated at R72 000 for the financial year ended 28 February 2022. Interest on loan is not capitalised. Rent, which increased by 10% with effect from 01 September 2021, was received for the period 01 March 2021 to 31 March 2022. The telephone account for February 2022, R5 000, was due to be paid on 02 March 2022. Depreciation must be calculated on vehicles at 20% p.a. on the reducing (diminishing) balance whilst depreciation on equipment must be calculated at 10% p.a. on cost. The following balances were obtained from the general ledger of Trendz Traders on 28 February 2022, before the year-end adjustments were considered: