1 (20 Marks) REQUIRED Use information provided below to prepare the Statement of Comprehensive Income for the year ended 28 February 2023. INFORMATION RIO LIMITED PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2023 Debit (R) Credit (R) Balance sheet accounts section Ordinary share capital 2 200 000 Retained earnings 608 500 Land and buildings at cost 2 372 000 Equipment at cost 1 065 000 Vehicles at cost 875 000 Accumulated depreciation on equipment 440 000 Accumulated depreciation on vehicles 220 000 Trading inventory 210 000 Debtors control 265 000 Provision for bad debts 15 000 Bank overdraft 70 000 Creditors control 325 000 Loan: Ria Bank (18% p.a.) 250 000 South African Revenue Services (Company tax paid) 130 000 Nominal accounts section Sales 4 580 000 Cost of sales 1 980 000 Sales returns 130 000 Advertising 140 000 Stationery 50 000 Bad debts 15 000 Discount received 18 000 Interest on overdraft 1 500 Directors fees 240 000 Rent income 110 000 Municipal rates 90 000 Other operating expenses 1 273 000 8 836 500 8 836 500 ADDITIONAL INFORMATION AND ADJUSTMENTS 1. Stationery used during the financial year ended 28 February 2023 amounted to R47 500. 2. Advertising includes a payment of R6 000 for advertisements of the same cost that will be published each month from December 2022 to November 2023. 2 3. Rent income amounts to R10 000 per month for the financial year ended 28 February 2023. Make the necessary adjustment. 4. Write off the account of debtor, P. Paul, who owed R1 500. 5. The provision for bad debts must be increased to R17 500. 6. Directors fees owed on 28 February 2023 amounted to R20 000, 7. The loan from Ria Bank was obtained on 01 February 2023. Provide for the outstanding interest on loan. 8. A notice from the municipality indicated that the rates for the year ended 28 February 2023 has been adjusted to R80 000. 9. Provide for depreciation as follows: 9.1 On equipment at 10% per year on cost. 9.2 On vehicles at 20% per year using the reducing balance method. 10. Company tax owed to South African Revenue Services for the year ended 28 February 2023 amounted to R24 070