From the following trial balance and attached notes, prepare an income statement for the year ended 31 December 2013 and a statement of financial position as at that date.

Patrick Cooper Trial balance as at 31 December 2013 Dr Cr £ £
Revenue 289,512 Purchases 132,950 Opening inventory 5,820 Bank interest 950 Wages and salaries 39,540 Drawings 22,000 Administration expenses 55,500 Equity at 1 January 2013 16,268 Trade receivables 6,300 Trade payables 5,210 Provision for doubtful debts 300 Bad debts written off 250 Selling expenses 37,790 Equipment at cost 14,000 Depreciation on equipment at 1 January 2013 2,350 Bank overdraft 1,600 Cash in hand 140 315,240 315,240 Notes:
1 Closing inventory was valued at £4,900.
2 There was an accrual of £300 for selling expenses and £150 of the administration expenses were prepaid.
3 An item of equipment bought for £600 on 1 January 2010 was sold for £100 on 1 January 2013. The proceeds are shown as part of ‘Revenue’. Equipment is depreciated at 20% p.a.
on the straight line basis, with no residual values.
4 The provision for doubtful debts is to be increased to £550.