The following trial balance was obtained from the books of Lincoln Delight as at June 30, 2023:

DETAILS	DR	CR
10% Mortgage		293,000
Bad Debts	3,520
Bank		103,200
Broadband	7,800
Building	740,000
Capital		822,000
Carriage Inwards	9,200
Carriage Outwards	16,300
Cash	55,460
Commission Received		28,400
Consultancy Fees Received		26,400
Creditors		16,800
Debtors	30,200
Discounts	3,240	7,080
Drawings	8,000
Equipment	279,000
Insurance	6,780
Loan Interest	16,000
Motor Vehicle	240,000
Motor Vehicle Repairs	8,900
Office Furniture	387,000
Opening Stock	19,500
Provision for Depreciation on Equipment		27,900
Provision for Depreciation on Office Furniture		70,000
Provision for Bad Debts		9,600
Provision for Depreciation on Building		232,000
Provision for Depreciation on Motor Vehicle		48,600
Purchases	726,400
Rent Received		36,000
Returns	3,320	8,240
Sales		872,200
Utilities Charges	11,200
Wages and Salaries	29,600
	2,601,420	2,601,420

Additional notes:

a. Stock at year end was valued at $87,800. Goods valued at $17,200 were located under a tarpaulin. They were not included in the stock count and are considered material.

b. Wages and Salaries is prepaid by $13,600.

c. Utilities charges is prepaid by $1,635.

d. The rent received is owing by $11,080.

e. Commission is prepaid by $1,800.

f. The provision for bad debts is to be adjusted to 5% of debtors.

g. During the year Lincoln took goods valued at $33,000. This amount was considered to be material and was not yet recorded.

h. Depreciation charges are to be applied as follows:

NON-CURRENT ASSET	RATE	METHOD
Building	5%	Straight Line
Motor Vehicle	20%	Straight Line
Office Furniture	10%	Reducing Balance
Equipment	10%	Straight Line

Required:

Prepare the following:

a) The Statement of Profit and Loss for the year ending June 30, 2023. (36 marks)

Total = 60 marks