The trial balance of Vincent Ltd at 30 June 2026 is shown below.

There was no movement in share capital for the year.

The following adjustments are required.

1. Record income tax expense of \($7500\).

2. Transfer \($1000\) to general reserve.

3. Accrued expenses: sales staff’s salary \($650;\) office salaries \($270;\) interest on bank loan \($20\).

4. Write off preliminary expenses \($3000\).

5.Rent prepaid \($300\).

6. Record depreciation: motor vehicles 10% on cost; office furniture 20% on cost; buildings 5%.

7. Recommend a dividend of 20c per share.

Required

(a) Prepare an income statement, a statement of changes in equity for the year ended 30 June 2026 and a balance sheet for Vincent Ltd as at 30 June 2026.

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VINCENT LTD Trial Balance as at 30 June 2026 Debit Share capital (50 000 shares issued at $1 called to 80c) Retained earnings 1/7/22 General reserve Asset replacement reserve Sales Credit $ 40 000 5.000 4 700 10 000 150 000 Sales returns and allowances $ 500 Cost of sales 93 280 Freight inwards Freight outwards 600 700 Advertising expense 1 000 Preliminary expenses 3 000 Buildings Selling expenses 44 000 1.000