The directors of DW Limited provided the following information at 30 September 2020. $ 6% debentures (2028) 18000 Bank overdraft 6450 Dividend paid 2000 General reserve at 1 October 2019 6500 Inventory at 30 September 2020 26 300 Issued share capital at 1 October 2019 200 000 Non-current assets at 30 September 2020 Cost 462 000 Provision for depreciation 106 000 Other payables 2200 Other receivables 1600 Provision for doubtful debts at 1 October 2019 625 Retained earnings 73475 Trade payables 8250 Trade receivables 14500 Additional information A draft income statement for the year ended 30 September 2020 was prepared showing a profit of $84900. The following errors were later discovered. 1 Inventory of $26300 included items valued at cost $5200 that needed repair. After repairs costing $600, the items could be sold for $5000. 2 Operating expenses included insurance of $400 that was prepaid at 30 September 2020. 3 The provision for doubtful debts should have been adjusted so that it equals 5% of trade receivables. The directors decided to transfer $5000 to general reserve. There was no change to the issued share capital during the year ended 30 September 2020.

1. (a)Calculate the correct value of inventory at 30 September 2020.[2]
2. (b)Calculate the revised profit for the year ended 30 September 2020 after adjusting for errors 1–3.[4]
3. (c)Prepare the statement of changes in equity for the year ended 30 September 2020.[5]
4. (d)Prepare the statement of financial position at 30 September 2020.[9]