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The following Trial Balance relates to the trading activities of Bolton PLC. Bolton PLC Trial Balance as at 31 May 2020 Issued ordinary share capital

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The following Trial Balance relates to the trading activities of Bolton PLC. Bolton PLC Trial Balance as at 31 May 2020 Issued ordinary share capital (1 shares) Issued 2% preference shares (1 shares) Retained earnings as at 1 June 2019 General reserve Share Premium Land at cost Equipment at cost Allowance (provision) for depreciation of Equipment Sales revenue Purchases Returns inwards Returns outwards Inventory (stock) as at 1 June 2019 Carriage inwards Rent Administrative costs General office expenses Bad Debt Directors' remuneration 15% Loan (repayable 2028) Loan interest Trade receivables (Debtors) Trade payables (Creditors) Cash Bank Dividends paid Debit Credit 750,000 150,000 108,939 135,000 100,000 960,000 585,000 137,400 979,572 500,540 36,000 105,270 89,424 63,000 129,240 98,631 26,340 4,500 37,500 300,000 45,000 75,000 126,633 9,639 200,000 33,000 2.892.814 2.892.814 Additional information as at 31 May 2020: 1. Inventory (stock) held at 31 May 2020 was 70,332. 2. Depreciation is to be provided on equipment at 10% using the reducing balance method 3. Administrative costs prepaid at the year-end were 7,500. 4. Allowance (provision) for bad and doubtful debts is to be created at 3% of trade receivables (debtors). 5. Bad debt previously written off was recovered and cheque payment of 2,460 received. This has not been recorded in the ledgers. 6. Corporation tax due for the year ended 31 May 2020 is 27,300. 7. It was decided that 15,000 is to be transferred to General Reserve. Required: a) Prepare an Income Statement for the year ended 31 May 2020 b) Prepare a Statement of Changes in Equity for the year ended 31 May 2020 (18 marks) (7 marks) c) Prepare the Statement of Financial Position (Balance Sheet) as at 31 May 2020 d) List three (3) types of business organisations and state one characteristic of each type (15 marks)

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