1. The following account information is for ZAMEFA as at December 31, 2020. All accounts have normal balances.

Revenue	K501, 400
Buildings (01.01.2020)	80,400
Taxes Payable	3,000
Equipment (01.01.2020)	40,000
Interest Expense	2,400
Interest Payable	600
Dividends	50,400
Land (01.01.2020)	157,320
Inventory	103,860
Bonds Payable	78,000
Notes Payable (due in 3 months)	24,400
Share CapitalOrdinary	60,000
Accumulated Depreciation - Equip. (01.01.2020)	10,000
Advertising Expense	1,560
Salaries and Wages Expense	53,040
Salaries and Wages Payable	900
Accumulated Depr. Buildings (01.01.2020)	15,000
Cash	40,000
Depreciation Expense	8,000
Prepaid Advertising	5,000
Utilities Expense	1,320
Purchases	150,000

Management has estimated that all the operating expenses (Advertising, Salaries and Wages, Utilities and Depreciation) allocated as follows ;40% to cost of goods, 50% to administration and 10% to distribution.

Opening Inventory was 50,000

Required

1. Prepare the income statement and a statement of financial position for the year 2020 in the form suitable for presentation to shareholders in line with financial reporting standard. Assume a 30% tax rate and that there were 100,000 ordinary shares outstanding during the year.(23 marks)
2. Prepare the closing entries for ZAMEFA ( 6 marks)