Section B (Written Questions) Question 1 The following trial balance was extracted from the books of Isaac's Auditing Firm as at 30 November 2021 Debit (S) Credit (S) S) Motor vehicles 216.980 Inventory as at 1/10/2020 26,180 Receivables 142,640 Payables 57,160 Cash at hank 12.700 Revenue 650,600 Purchases 318,000 Purchases Returns & Allowances 18,965 Sales Returns & Allowances 22.980 Rental costs on office space 41,480 Bank loan 150,715 1.780 Interest charged by supplier Carriage expense 7,000 Discount expense 2,540 Discount income 3,500 3.150 6,520 2.550 2500 Advertising and media costs Light and heat Bank overdraft Telephone and internet charges Insurance Rates and water charges Wages and salaries Staff welfare 18,000 9,380 103,740 13.150 Interest on loan 3,050 Drawings 11,720 Capital, Isaac 80,000 963,490 963,490 Page 6 The following information, which has not been accounted for above, is also available: (1) The closing inventory valued at $38.000 (ii) Daring the year to 30 November 2021, Isaac took the following for personal use: $255 in purchases items per month; $88 from cash at bank per month (iii) Included in the insurance costs above is $12,000 for building insurance which covers the period from 1 December 2020 10 28 February 2022 (iv) Telephone and internet charges are fixed at $169 per month. The amount included in the trial balance above does not include telephone and internet charges for September 2021 to November 2021. (v) 70% of carriage expense relates to carriage inwards and the remainder relates to carriage outwards You are required to: (a) prepare the Statement of Comprehensive Income for the year ended 30 November 2021, (b) prepare the Statement of Financial Position as at 30 November 2021, (e) explain the FOUR steps in the accounting cycle. (Total: 9+6+5= 20 marks)