The following information has been taken from the books of Joshua Co, a limited liability company, as at 31 May 2019 Dr Cr $000 $000 Discounts received 65 Share premium account 260 Property expenses 130 Trade payables 375 Loan note interest 43 $1 Ordinary shares 2,340 Retained earnings at 1 June 2018 410 Allowance for receivables at 1 June 2018 50 Sales revenue 7,515 Cash 20 Inventory at 1 June 2018 455 Other operating expenses 366 Marketing expenses 65 Wages and salaries 878 Bank 124 Returns inward 124 Trade receivables 1,180 Purchases 4,641 7% Loan notes 614 Receivables expense 195 Land at cost 962 Buildings at cost 1,940 Motor vehicles at cost 312 Furniture and equipment at cost 1,560 Accumulated depreciation at 1 June 2018 Buildings 468 Motor vehicles Furniture and equipment 546 12.871 12.871 104 You have also been provided with the following information: You have also been provided with the following information: 1 Inventory at 31 May 2019 was valued at $357,000 based on its original cost. However, $35,000 of this inventory is now obsolete and the directors have agreed to sell it in June 2019 for a cash price of $25,000. 2 3. 5. The marketing expenses include $10,000 which relates to June 2019, Based on past experience the allowance for receivables is to be increased to 5% of trade receivables There are wages and salaries outstanding of $55,000 for the year ended 31 May 2019. Buildings are depreciated at 5% of cost. At 31 May 2019 the buildings were professionally valued at $2,300,000 and the directors wish this valuation to be incorporated into the accounts. Other depreciation is to be charged for as follows: Motor vehicles at 25% of written down value. (11) Furniture and equipment at20% of cost. Tax of $200,000 is to be provided for the year. No dividends have been paid or declared 7. 8 Required: Prepare the following statements, for internal use: 6) The statement of profit or loss for the year ended 31 May 2019 (20 marks) (1) The statement of financial position as at 31 May 2019 (20 marks)