The response to the question MUST be typed, properly aligned and formatted following APA 7^th edition style. Question One The following list of balances is from the ledger of Mrs. Graver a sole proprietor as at April 30, 2020. Purchases $61,420 Sales $127,245 Stock May 1, 2017 $7,940 Capital May 1, 2017 $25,200 Bank overdraft $2,490 Cash $140 Discount Allowed $2,480 Discount Received $62 Returns inwards $3,486 Returns outwards $1,356 Carriage outwards $3,210 Rent and insurance $8,870 Provision for doubtful debts $630 Fixtures and fittings $1,900 Van $5,600 Debtors $12,418 Creditors $11,400 Drawings $21,400 Wages and salaries $39,200 General office expenses $319 You are required to: 1. Prepare a trial balance from the information provided 2. Using the following additional information: a. Stock April 30, 2018 $6,805. b. Wages and salaries accrued at April 30, 2018 $3,500; Office expenses owing $16. c. Rent prepaid April 30, 2018 $600. d. Increase the provision for doubtful debts by $110. e. Provide for depreciation as follows: Fixtures and fittings $190; Van $1,400. i. Prepare an Income Statement for Mrs. Graver for the year ended April 30, 2018 ii. Prepare the statement of financial position as at April 30, 2018 3. Explain the importance of Income Statement and Statement of Financial position to Mrs. Graver. Also, from the information gathered from the Income Statement and Statement of Financial position provide Mrs. Graver with an analysis of his business performance. Question Two The following list of balances is from the ledger of Mr. Carty as at February 28, 2018. Carriage Outwards $4,562 Drawings $18,440 Carriage Inwards $11,830 Discount Allowed $2,306 Discount Received $1,750 Purchases $135,680 Return Inwards $5,624 Rents, rates & insurance $25,973 Heating & Lighting $11,010 Postage, stationery & telephone $2,410 Debtor $ 24,500 Fixtures & Fittings- at cost $120,740 Provision for depreciation on fixtures & fittings- as at Feb. 28, 2018 $63,020 Depreciation $12,074 Advertising $5,980 Salaries & wages $38,521 Bad debt $2,008 Cash $534 Return Outwards $13,407 Provision for doubtful debt $512 Bank $4,440 Capital $83,887 Sales $259,870 Creditor $19,840 Stock as at March 1, 2017 $15,654 You are required to: 1. Prepare a trial balance from the information provided 2. Using the following additional information: a. Stock at the close of business was valued at $17,750 b. Insurances have been prepaid by $1,120 c. Heating and lighting is accrued by $1,360 d. The provision for doubtful debt is to be adjusted so that it is 3% of debtors e. Prepaid rates $5,435 i. Prepare an Income Statement for Mr. Carty for the year ended Feb. 28, 2018

ii. Prepare the statement of financial position as at Feb. 28, 2018 3. Explain the importance of Income Statement and Statement of Financial position to Mr. Carty. Also, from the information gathered from the Income Statement and Statement of Financial position provide Mr. Carty with an analysis of his business performance.