QUESTION 1 REQUIRED 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 Balance Sheet accounts section Capital Drawings Land and buildings Vehicles at cost Equipment at cost Accumulated depreciation on vehicles Accumulated depreciation on equipment Fixed deposit: Rio Bank (10% p.a.) Trading inventory Debtors control Provision for bad debts Bank Cash float Creditors control Mortgage loan: Rio Bank (12% p.a.) Nominal accounts section Sales Cost of sales Sales returns Salaries and wages Bad debts Stationery Rates and taxes Motor expenses Repairs to building Telephone Electricity and water Bank charges Insurance Interest on mortgage loan Interest on fixed deposit Rent income Adjustments and additional information 1. 1.1 1.2 Stationery R4 000 2. 3. 4. 5. 6. Stocktaking on 28 February 2023 revealed the following inventories: Trading inventory R220 000 7. 8. Debit (R) 160 000 1 800 000 1 360 000 1 000 000 300 000 230 000 260 000 134 000 12 000 960 000 20 000 838 000 24 000 40 000 116 000 180 000 34 000 76 000 92 000 16 000 40 000 66 000 (20 MARKS) 7 758 000 Credit (R) 2 520 000 760 000 320 000 16 000 220 000 640 000 3 000 000 12 000 270 000 7 758 000 The telephone account for February 2023, R6 000, was due to be paid on 01 March 2023. A debtor who was declared insolvent paid R900 which represented 30% of her debt. The balance of her account must now be written off. The provision for bad debts must be decreased to R14 000. 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. The insurance total includes an annual premium of R15 000 that was paid for the period 01 June 2022 to 31 May 2023. Provide for outstanding interest on the mortgage loan for February 2023. Provide for the outstanding interest on fixed deposit. The investment in fixed deposit was made on 01 September 2022. A payment for the annual service of a motor vehicle was not recorded, R5 000. 9. 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.