Use the information provided below to prepare the Statement of Comprehensive Income for the year ended 28 February 2023.

INFORMATION FIESTA TRADERS

PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2023.

Debit (R) Credit (R)

Balance Sheet accounts section

Capital 2 520 000

Drawings 160 000

Land and buildings 1 800 000

Vehicles at cost 1 360 000

Equipment at cost 1 000 000

Accumulated depreciation on vehicles 760 000

Accumulated depreciation on equipment 320 000

Fixed deposit: Rio Bank (10% p.a.) 300 000

Trading inventory 230 000

Debtors control 260 000

Provision for bad debts 16 000

Bank 134 000

Cash float 12 000

Creditors control 220 000

Mortgage loan: Rio Bank (12% p.a.) 640 000

Nominal accounts section

Sales 3 000 000

Cost of sales 960 000

Sales returns 20 000

Salaries and wages 838 000

Bad debts 24 000

Stationery 40 000

Rates and taxes 116 000

Motor expenses 180 000

Repairs to building 34 000

Telephone 76 000

Electricity and water 92 000

Bank charges 16 000

Insurance 40 000

Interest on mortgage loan 66 000

Interest on fixed deposit 12 000

Rent income 270 000

Total: 7 758 000

Total: 7 758 000.

Adjustments and additional information

1. Stocktaking on 28 February 2023 revealed the following inventories:

1.1 Trading inventory R220 000.

1.2 Stationery R4 000.

2. The telephone account for February 2023, R6 000, was due to be paid on 01 March 2023.

3. A debtor who was declared insolvent paid R900 which represented 30% of her debt. The balance of her account must now be written off.

4. The provision for bad debts must be decreased to R14 000.

5. Rent has been received up to 31 March 2023. Note: The rental was increased by R2 000 per month with effect from 01 November 2022.

6. The insurance total includes an annual premium of R15 000 that was paid for the period 01 June 2022 to 31 May 2023.

7. Provide for outstanding interest on the mortgage loan for February 2023.

8. Provide for the outstanding interest on fixed deposit. The investment in fixed deposit was made on 01 September 2022.

9. A payment for the annual service of a motor vehicle was not recorded, R5 000.

10. Provide for depreciation as follows: 10.1 On equipment at 10% p.a. on cost. 10.2 On vehicles at 20% p.a. using the diminishing balance method. Note: A vehicle with a cost price of R360 000 was purchased on 01 December 2022. The purchase has been recorded.