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An extract from the financial records of Alpha plc as at $31$ December $2021$ is below:

$000000$

Bank $140$

Electricity $($for the workshop$)330$

Chairman$$s salary $500$

Insurance $170$

Machinery at cost $4,200$

Machinery accumulated depreciation $1,520$

Office expenses $250$

Other creditors $770$

Payables $($trade creditors$)620$

Receivables $($trade debtors$)3,000$

Retained earnings at $1$ January $20211,320$

Provision for bad debt and doubtful debts at $1$ January $202180$

Purchases $13,140$

Rent for the distribution depot $280$

Royalties received $40$

Sales $23,500$

Share capital $(0\mathrm{.}50$ shares$)3,000$

Vehicles at cost $960$

Vehicles accumulated depreciation $560$

Wages and salaries $4,480$

Workshop building at cost $2,000$

Workshop rates $400$

Inventories $($stock$)$ at $1$ Jan $20211,560$

Additional information:

$1.$ Closing inventories $($stock$)$ as at $31$ December $2021$ valued at cost amounted to $1,640,000.$

$2.$ Depreciation is to be provided on machinery and vehicles at rates of $25\%$ and $20\%$ respectively. The workshop building acquired in this accounting period is to be depreciated at $5\%$ per annum. Company A has adopted the reducing balance method of providing for depreciation. The workshop and machinery are used entirely for production and vehicles are used $75\%$ for distribution and $25\%$ for administration.

$3.$ The audit fee for the year to $31$ December $2021$ is estimated to be $120,000$ and should be accrued in the $2021$ financial statements.

$4.$ Insurance paid in advance at $31$ December $2021$ amounted to $30,000.$ Insurance should be allocated as follows: Production $50\%$; Administration $50\%.$

$5.$ The provision for bad debts is to be set to $5\%$ of the outstanding Receivables $($trade debtors$)$ at $31$ December $2021.$

$6.$ Corporation Tax of $800,000$ has been estimated in respect of the profit for the year.

$7.$ The wages and salaries expense is as follows:

$000$

Sales directors salary $480$

Production staff wages $1,500$

Distribution depot staff $800$

Administration wages $1,700$

$4,480$

Required:

$($a$)$ Produce journal entries to record the transactions $(1-6)$ above.

$($b$)$ Prepare, in a form suitable for publication, a Statement of Comprehensive Income for the year to $31$ December $2021$ together with a Statement of Changes in Equity and a Statement of Financial Position as at that date.

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