The following information is the preliminary trial balance of King's Construction Company Ltd for year ending of 31st of December 2021: Debits () Sales Revenue Short-Term Marketable Securities Property Building Machinery - Historic Cost Building Machinery - Accumulated Depreciation Inventories (at the 1st of January 2021) Purchases Lease Liabilities (due in more than one year) Land Staff Wages Accrued Staff Wages Office Equipment - Historic Cost Office Equipment - Accumulated Depreciation Bank Interest Expense Construction Vehicles - Historic Cost Construction Vehicles - Accumulated Depreciation Trade Receivable Goodwill Trade Payable Bank Loan Share Premium Rental Income (from non-core operations) Asset Revaluation Lease Expense (on retail shops) Lease Liabilities (due in less than one year) Share Capital (100) Retained Earnings Administrative Expense Pension Liability Cash and Cash Equivalents 14,500,000 52,000,000 25,000,000 18,000,000 80,000,000 12,000,000 42,000,000 16,500,000 4,000,000 10,000,000 28,200,000 44,000,000 3,500,000 45,000,000 Credits () 230,000,000 5,000,000 6,500,000 2,000,000 10,000,000 2,000,000 4,000,000 40,000,000 30,000,000 7,000,000 2,000,000 1,200,000 50,000,000 45,000,000 15,000,000 55,000,000 449,700,000 449,700,000 Adjustments 1) Closing inventories was 12,000,000 on the 31st of December 2021. 2) Corporation tax is 20% for the year, half due now and should be paid in cash and half due in April 2022. Land was revalued from 12,000,000 to 15,000,000. A court case is currently going through the courts in which King's Construction Company Ltd is being sued by an employee due to an injury at work in 2021, in which the solicitors estimate they will have to payout 1,000,000 and that it is probable it will lose the court case. 5) A court case is currently going through the courts in which King's Construction Company Ltd is suing its biggest competitor for 4,000,000 due to copyright infringement, which the outcome of winning the court case is considered probable. 6) Depreciation (all based on reducing balance): a) Office Equipment - 20% 3) 4) b) Building Machinery - 15% c) Construction Vehicles 10% 7) 6,000,000 of the trade receivable figure is considered unrecoverable and should be written-off as bad debts. 8) 9) 5,000,000 of administrative expenses included in the trial balance is actually a prepayment for 2022 financial year. Dividends were distributed to shareholders during the financial year to a value of 4,000,000 in cash. 10) A 1 for 2 bonus issue was given to shareholders. The bonus issue was conducted before the rights issue. The bonus issue should be made using a revenue reserve. 11) A rights issue of 3 for 2 basis, at 500 per share, with 75% of shares bought by shareholders, conducted after the bonus issue. REQUIRED Please prepare a balance sheet and income statement for 31st December 2021 using the trial balance presented on the previous page, ensuring that you make all the requested adjustments. Please also ensure to add notes of any contingent assets and/or contingent liabilities if you consider such an event to have arisen.