The following is the trial balance of Lift Ltd as at 31 December 20x9 Lift Ltd Trial balance as at 31 December 2009 Issued ordinary share capital ( S 1 shares ) Issued preference shares ( S 1 share ) Retained earnings Freehold land Other non-current assets 250,000 50,000 36,313 320,000 195,000 Sales revenue 315,300 Purchases Inventory 1.1.20X8 Rent 165,090 29,808 43,080 32,877 8,780 15,000 Salaries General expenses Directors' remuneration 10% Debenture 100,000 10,000 23,976 29,013 21,211 Debenture interest Debtors and Creditors Bank General reserve Provision for depreciation of other non-current assets Interim dividends 65,000 45,800 11,000 883,624 883,624 Additional information: 1. 2 3. 4. 5. 6. Inventory held at 31 December 20X9 was $23.444. Depreciation is to be provided on other non-current assets at 5% using reducing balance. The company does not charge depreciation on freehold land. Taxation for the year to be 59,100. A transfer of $10,000 was to be made to the general reserve Salaries accrued at the year-end were $2,233. Rent prepaid for the following year was 5820. Required: 1. Prepare the income statement of Lift Ltd for the year ended 31 December 20x9. (18 marks) 2. Prepare the statement of changes in equity of Lift Ltd for the year ended 31 December 20x9. (7 marks) 3. Prepare the balance sheet of Lift Ltd as at 30 December 20x9. (25 marks)