Simons operates Forty Winks Inc, a mattresses and bedding business that he started a few years ago. The following unadjusted trial balance has been extracted from his business records as at 31 December 2021: Unadjusted Trial Balance as at 31 December 2021 Account Dr ($) Cr (S) Vehicles, at cost 424,800 Equipment, at cost 281,600 Carriage inwards 21,400 Commission income 19,700 Discounts 18,500 16,300 Trade receivables 219,400 Capital: Simons 320,000 Returns inwards 32,700 Insurance expense 76,900 Advertising expense 45,200 5% Bank loan, repayable in 2028 288,000 Cash at bank 168,800 Inventory as at 1 January 2021 104,300 Sales 1,496,200 Utilities expense 72,800 Carriage outwards 23,500 Trade payables 192,700 Returns outwards 26,600 Rent expense 178,200 Accumulated depreciation as at 1 January 2021 - Vehicles - Equipment Interest expense Drawings: Simons Salaries expense Purchases 236,300 145,700 7,200 15,600 345,100 705,500 2,741,500 2,741,500 The following additional information was made available before the year-end closing: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Goods costing $8,200 was withdrawn by Simons during the year. This had been recorded as goods returned to a credit supplier. These goods had been excluded from the physical stock count at year-end. Insurance expense for the year included $13,400 paid for coverage from 1 December 2021 to 31 March 2022. Monthly insurance cost is assumed to remain constant during the current year and in the near future. A credit customer paid Forty Winks Inc $20,160 in settlement of an outstanding debt after deducting a 4% cash discount. This had not been recorded by Forty Winks Inc. $5,900 paid by Forty Winks Inc to deliver goods to its customers had been included in the advertising expenses account. Commission earned of $7,300 had not been received by Forty Winks Inc and was omitted from the books of the business. Interest expense in the trial balance relates to the 5% bank loan which was taken up on 1 May 2021. The outstanding interest for year has not been accounted for as at year-end. Rent expense in the trial balance consists of payments made from 1 January 2021 to 30 October 2021. Monthly rental cost is assumed to remain constant during the current year and in the near future Depreciation on fixed assets for the year were as follows: Vehicles Equipment $27,300 $19,800 Payment of $6,300 for utilities was recorded on opposite sides of the correct accounts. A physical stock count on 31 December revealed inventory to be $131,800. Required: (a) Prepare the necessary general journal entries to record transactions (1) to (9). Narrations are not required. (Hint: For some transactions, you will need to create new accounts which are not shown on the trial balance.) (40 marks) (b) Prepare the following financial statements for Forty Winks Inc: (i) Statement of Comprehensive Income for the year ended 31 December 2021 (ii) Statement of Financial Position as at 31 December 2021 (60 marks)