Question 2 (20 Marks) Required: Prepare the Statement of Comprehensive Income as at: 28 February 2021. Embassy Traders Pre-adjustment Trial Balance as at: 28 February 2021

	Debit	Credit
Balance sheet accounts section
Capital		1 651 100
Drawings	132 900
Land and buildings	1 254 800
Vehicles at cost	925 000
Equipment	662 000
Accumulated depreciation on vehicles		528 000
Accumulated depreciation on equipment		369 000
Fixed deposit: Bob-bank (9% p.a.)	200 000
Trading inventory	152 000
Debtors control	174 800
Provision for bad debts		10 000
Bank	127 800
Creditors control		184 800
Mortgage loan: Bob-bank (18% p.a.)		330 000
Nominal Accounts Section
Sales		2 075 000
Cost of sales	795 000
Sales returns	15 000
Salaries and wages	586 000
Bad debts	18 000
Stationary	30 000
Rates and taxes	58 000
Motor expenses	32 000
Advertising	23 000
Telephone	44 000
Electricity and water	66 000
Bank charges	8 000
Insurance	5 000
Interest on mortgage loan	26 000
Interest on fixed deposit		15 000
Rent income		171 600
	5 334 500	5 334 500

Adjustments and additional information 1. Trading goods, cost R1 000, were donated to a school on 27 February 2021. This transaction has not yet been recorded. 2. A physical stocktaking on 28 February 2021 showed the following inventories on hand: 1.Trading inventory R148 000 2. Stationery R4 000 1. Write off the account of debtor, R. Brown, R2 000. 2. The provision for bad debts must be decreased to R9 000. 3. Rent income amounts to R13 200 per month. Make the necessary adjustment. 4. The water and electricity account for February 2021, R7 000, was due to be paid on 3 March 2021. 5. Rates and taxes include an amount of R15 000 that was paid for the period 1 January 2021 to 3 March 2021. 6. An amount of R500 appeared in the February 2021 bank statement for bank charges. This amount was not recorded. 7. The investment in fixed deposit was made on 1 March 2019. Provide for the outstanding interest. 8. Provide for the outstanding interest on loan, R3 700. 9. A payment of R3 000 for insurance was erroneously debited to the advertising account. 10. Provide depreciation as follows: 1. On equipment at 10%, using the fixed instalment method. 2. On vehicles at 20%, using the diminishing balance method.