The following trial balance relates to X at 30 July 2018:

The following adjustments were not reflected in this trial balance as of 07/30/2018.

1. Land that cost $7,000 is to be revalued to $13,000. Assume income tax rate is 20% and take into account when reflecting the revaluation.
2. The balance on the income tax account represents an overprovision from previous year
3. Prior year income tax expense was $6,000. This year it is expected to increase by 15%.
4. As of 07/30/2018 the book base was higher than tax base of fixed assets for $80,000.
5. As of 07/30/2018 the X conducted stock count and it was revealed that inventory was stolen for $1,600 which was not reflected in trial balance. Moreover inventory totaling $1,200 was damaged. And now it is believed that goods have a selling price of $3,200 after incurring rectification costs of $500.

Prepare balance sheet and income statement for X as of 07/30/2018.

Trial balance as of 12/31/2020
	DR	CR
Revenue		60 000
Cost of sales	32 000
Distribution costs	8 000
Administration expenses	7 000
Loan interest paid	700
Non-current assets (carrying amount)	53 000
Income tax		1 700
Deferred tax at 1 January 2020		12 000
Interim dividend paid	2 500
Trade receivables	13 000
Trade payables		48 000
Inventory as at 1 January 2020	7 400
Cash and cash equivalents	9 500
Ordinary shares $1		15 000
Share premium		4 000
15% Loan notes		10 000
Retained earnings at 1 January 2020	17 600
	150 700	150 700

Answer rating: 100% (QA)

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