RP Atton Ltd have provided you with the following trial balance as at 31 May 20x3: Cash and cash equivalents Stock at 1 June 20x2 General expenses Insurance Advertising Wages and salaries Heating and lighting General reserve Share premium account Discounts received Land at cost $000 $000 430 650 25 45 35 800 70 120 100 888 Buildings at cost 639 2,500 Motor vehicles at cost 160 Furniture and equipment at cost 1,500 Retained earnings at 1 June 20x2 142 Provision for doubtful debts 35 Telephone 25 Miscellaneous expenses 95 Sales 8,500 Returns inward 85 Trade creditors 310 Bank overdraft 123 Debtors 1,400 Purchases 2.811 Debenture interest paid Bad debts 8% Debentures 20 500 500 200 1,000 9% $1 Preference shares $1 Ordinary shares Provisions for depreciation at 1 June 20x2 Buildings Motor vehicles Furniture and equipment Gain from discontinued operations 330 60 300 20 11,790 11,790 You have also been provided with the following information: 1. Stock at 31 May 20X3 was valued at $500,000. 2. Land is to be revalued to $650,000. 3. The insurance expenditure includes $11,000 which relates to June 20X3 to August 20x3 4. There are wages and salaries outstanding of $65,000 for the year ended 31 May 20x3 5. The provision for doubtful debts is to be increased to 5% of debtors 6. Buildings are depreciated at 5% of cost. 7. Provision is to be made for outstanding debenture interest 8. Depreciation is to be provided for as follows: L Motor vehicles at 20% of written down value. Furniture and equipment at 20% of cost. 9. During May 20X3 a bonus (or scrip) issue of one for ten was made to ordinary shareholders. This has not been entered into the books. The share premium account is to be used for this purpose. 10. The directors have declared the following a. Propose an ordinary dividend of 25 cent per share. The bonus shares do not rank for dividend until the year ended 31 May 2004; and b. Payment of the preference dividend for the second half-year. 11. An additional $250,000 is to be transferred to the general reserve. 12.The tax owing on profits for the year to 31 May 20X3 was estimated to be $500,000. Required: Prepare for RP Atton i. Income Statement and Comprehensive Income for the year to 31 May 20x3 . Statement of Changes in Equity for the year ended 31 May 20x3 Statement of Financial Position as at that date