Statement of financial position as at 31.12.2020 Assets Non-Current Assets Land & Buildings 330,000 Plant & Machinery 325,000 (-) Accumulated Depreciation (25,000) 300,000 630,000 Current Assets Prepaid Advertising Expense 5,000 Inventories 36,000 Cash in Bank 100,000 Debtors 44,000 185,000 TOTAL ASSETS 815,000 TOTAL ASSETS 815,000 Equity & Liabilities Original Equity 506,700 Current Liabilities Accrued Insurance 620 Bank overdraft 56,000 Non-Current Liabilities Borrowings - 9% Loan Notes 251,680 TOTAL EQUITY & LIABILITIES 815,000 The following is the summary of transactions that took place during the year ending 31.12.2021 1. On 1/7/2021, business spent 65,000 on additional plant and Machinery. This is expected to have a life of 5 years and then to be sold for 5,000. The business uses straight-line method for calculating depreciation. 2. Sold Inventories for 23,000 on credit; these inventories had a cost of 17,000. 3. The owners of the business introduced 100,000 of their own money, which was placed in the business bank account. 4. Insurance for the first three quarters of the year and 620 for the last quarter of the previous year were paid totalling 1,820. After 31.12.2021, but before the financial statements were finalised for the year, Insurance bill for the last for the last quarter arrived showing a charge of 690. 5. 1,000 owed to the business by a customer who is unable to pay has become bad. 6. Repaid 20,000 of the amount borrowed (9% Loan Notes) to the lender on 31.12.2021. Interest on these borrowings should be paid at the year end. 7. Advertising of 2,000 was paid. The annual advertising expense amounts to 2,000. Required: - a) Record all these transactions in a Journal. b) Open Ledger accounts and bring down the balances in the Income Statement & Statement of financial position at 31.12.2021. c) Make entries to record the transactions 1 to 7 (above), opening any additional accounts as necessary. d) Prepare Income Statement and Balance Sheet (Statement of Financial Position) for the year ending 31.12.2021