The question requires to draw up (a) Income statement (b) Statement of changes in Equity (c) Statement of Financial Position. Thank You!

Note: 1.No hand-written, please use your keyborad. 2. Don't paste or copy other's solutions, Thank you! 3. Please use a formal format for these three statements, including the correct type setting, headings and time period. 4. Please read the requirements below carefully! Please make the correct statements.

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William Trading Limited is a retailer that has engaged you to assist in the preparation of its financial statements at 31 December 2020. Following are the correct adjusted account balances, in alphabetical order, as at that date. Each balance is the "normal" balance for that account. (Hint: The normal balance is the same as the debit or credit side that increases the accounts) Accounts payable Accounts receivable Accumulated depreciation: office equipment Additional paid-in capital (share premium) Bonds payable (due 31 December 2023) $ 12,750 2,600 12,000 7,000 22,500 Cash Ordinary shares (1,800 shares, $10 par value) Cost of goods sold Deferred income taxes Depreciation expense: office equipment 15,200 18,000 100,575 5,750 2,750 Dividends declared Income tax expense Insurance expense Land Inventory 5,000 8,190 900- 37,500 17,500 Notes payable (due 31 December 2021) Office equipment Office supplies Office supplies expense Preference shares (250 shares, $20 par value) 2,500 41,000 900 520 5,000 Premium on bonds payable Prepaid rent Rent expense Retained earnings (January 2020) Salaries expense 1,750 1,800 6,100 21,050 88,095 Sales Sales returns and allowances Sales taxes payable Treasury shares (200 common shares at cost) Utilities expense 226,000 2,500 3,200 2,250 4,120 Requirements: 1. Prepare an income statement for the year ended 31 December 2020, which in- cludes amounts for gross profit, profit before income taxes, and profit. List ex- penses (other than cost of goods and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share. 2. Prepare a statement of changes in equity for the year ending 31 December 2020.- 3. Prepare a statement of financial position (balance sheet) as at 31 December 2020, following these guidelines:- Include separate asset and liability categories for those assets which are cur- rent". Include and label amounts for total assets, total liabilities, total equity, and to- tal liabilities and equity." Present deferred profits taxes as a noncurrent liability. To the extent information is available that should be disclosed, include that in- formation in your statement