The following trial balance was obtained from the books of The Covid Cafe as at January 31, 2021 Particulars DR (S) CRES) Sales 267.800 Accounts Receivable 45.000 Insurance 10.000 Capital 253.000 Provision for bad debts 8.000 5.250 2.500 Carriage Inwards Retums Carriage Outwards Creditors 3.500 3.200 27200 Discounts 4.150 7.500 Purchases 165.000 Bad Debts 1700 Rent Received from James 35.000 48.500 Wages Drawings Stock at February 2020 27.000 35 200 Equipment 155.000 Equipment Commission Received 20.000 Loan 80,000 240,000 Building Provision for depreciation - Building 16,000 750.000 750.000 Notes a) Depreciation rates are as follows: i Equipment -10% per annum on the reducing balance basis II. Building - 5% per annum on the straight-line basis b) The owner of Covid cafe took merchandise valued at $ 1.600 and gifted it to her friend. This was not recorded in the books. c) A small section of the caf has been rented to James, the rent amounts to $2.000 per month due the first day of each month d) Wages is prepaid by $2,000; Insurance are owed by $900, and commission receivable earned for the year amounted to $25,000. e) The economy has been bad since the pandemic and on the straight-line bass b) The owner of Covid cafe took merchandise valued at $ 1.600 and gifted it to her friend. This was not recorded in the books, c) A small section of the cafe has been rented to James the rent amounts to $2000 per month due the first day of each month d) Wages is prepaid by $2,000: insurance are owed by $900, and commission receivable eamed for the year amounted to $25,000 e) The economy has been bod since the pandemic and the provision for bad debt is to be adjusted so it is 20% of accounts receivable. f) Stock at the yearend was valued at $51,700. g) Twenty thousand dollars ($20,000) of the Loon must be repaid by March 31, 2021 Required Prepare Covid Caf's set of financial statements with the appropriate headings (40 marks)