Answer Happy

Question 1The following are the unadjusted ledger balances of AlejandraLimited for theyear ended 31 December 2022:$Ordinary Share Capital 600,000Sales 560,000Trade payables 35,760Purchases returns 720Purchases 112,000Sales returns 484Distribution Costs 496Freight Inwards 440Rental expense 100,000Insurance expense 37,600Advertising and Selling costs 51,280Salaries and Wages 40,000Cash at Bank 23,380Opening Inventory 10,800Trade Receivables 40,000Plant and Equipment at cost 600,000Accumulated Depreciation (1st January 2022: Plant andEquipment) 60,000Motor Vehicles at cost 240,000Additional information needed for year-end adjustments, are asfollows:Insurance for January 2023 $2,900Closing Inventory, at 31 December 2022 $4,500Irrecoverable debts to be written off $2,200Rental owing as at 31 December 2022 $20,000Depreciation for the year – Plant and Equipment $60,000Depreciation for the year – Motor Vehicles 20% on costRequired:a. Prepare an Income Statement for the year ended 31 December2022b. Prepare a Statement of Financial Position as at that date.