The following are the unadjusted ledger balances of Hydrangea Limited for the year ended 31 December 2021: Ordinary Share Capital Sales Trade payables Retums Outwards Purchases Retums Inwards Carriage outwards Carriage inwards Rental expense Insurance expense Advertising Salaries Cash at Bank Opening Inventory at 1st January 2021 Trade Receivables Plant and Equipment at cost Accumulated Depreciation (1st January 2021: Plantand Equipment) Motor Vehicles at cost 250,000 700,000 63,090 18,000 200,600 1,210 1,240 1,040 75,000 74,000 80,000 98,000 58,000 42,000 35,000 250,000 25,000 140,000 Additional information needed for year-end adjustments, are as follows: Insurance for January 2022 $1,500 Closing Inventory, at 31 December 2021 $31.000 Inrecoverable debts to be written off $1,700 Rental owing as at 31 December 2021 $25,000 Depreciation for the year - Plantand Equipment $35,000 Depreciation for the year - Motor Vehicles 20% on cost Required: a. Prepare an Income Statement for the year ended 31 December 2021 b. Prepare a Statement of Financial Position as at that date