The following is the trial balance of R. Raga, trading as Star Electronics, at 31 December 2018: STAR ELECTRONICS TRIAL BALANCE AT 31 DECEMBER 2014 Accounts payable Accrued wages cavable (01/01/2018) Bank DR CR R R 23 600 650 5800 Capital (01/01/2018) 83 000 Drawings 18.000 Land and buildings, at cost 84 300 Loan 40 000 Office equipment, at cost less depreciation 19 200 Prepaid interest (01/01/2018) 2250 Inventory 38.000 Sales 219 000 135 000 Cost of sales Rent income Administrative expenses Depreciation expense Interest expense Salaries and wages expense 31.000 3.700 4.300 7500 24 600 R369 950 R369 950 The following information must be taken into consideration 1 2 3. The bookkeeper had forgotten to reverse certain balances arising from the adjusting entries recorded at the end of the 2017 financial year. On 31 December 2018 the bookkeeper had recorded the depreciation expense for office equipment at the current rate of 25% per annum. However, his depreciation calculation was incorrect because an amount of R4 000 paid during the year for a batch of electronic calculators bought for resale had been incorrectly debited to office equipment account. The latter transaction had been recorded on 1 July and has not yet been corrected The trial balance total for accounts payable is incorrect because discounts taken during the year for prompt payment of suppliers accounts have not been recorded. These discounts amount to R3 200. 4 An examination of the firm's rent register for 2018 revealed that rents totalling R600 for 2019 had already been received and recorded the total for rent earned by the firm for 2018 was R4 800 at 31 December 2018 certain tenants had still not paid the amounts owing for the last quarter of the year. Page 1 of 3 5 1.32 Interest on the loan is payable half-yearly in advance on 1 April and 1 October. The interest rate is 15% per annum. The loan, originally for R60 000, had been raised on 1 January 2016 and on 30 September 2018 the firm had repaid R20 000 of this sum. The latter payment together with the two interest payments had been made and recorded on the correct dates. The remaining amount of the loan is due for repayment in 2020. REQUIRED Prepare the firm's Statement of Profit or Loss and Statement of Financial Position for 2018. Show all workings and set out all calculations clearly. Note: A worksheet has been provided which you can choose to use. If used, submit as part of your workings