Adele has extracted the following balances from her books of account at 31 December 2014.

Additional information:

• Inventory at 31 December 2014 was valued at $43,450.

• Advertising costs of $580 relate to an advertising campaign to be launched in 2015.

• Property rental currently costs $3200 per month. Two months have been paid in advance.

• Light and heat worth $600 has been used but not yet invoiced.

• Depreciation for the year should be provided on the following basis.

• Adjust the provision for doubtful debts to 3 per cent of trade receivables at 31 December 2014.

Required

Prepare an income statement for the year ended 31 December 2014 and a statement of financial position at that date taking account of the additional information.

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Advertising 5 143 Bank overdraft 12 027 Bank loan account (repayable 2021) 18 370 Capital account 90 283 Carriage inwards 914 Discaunt allowed 2 194 Drawings 52 496 Inventory at 1 January 2014 47 200 Legal expenses 2 310 Light and heat 12 952 Mator expenses 11 380 Motor vehicles - cost at 1 January 2014 64 200 - provision for depreciation at 21 680 1 January 2014 Office expenses 12 275 Plant and equipment -cost at 1 January 2014 - provision for depreciation at 1 January 2014 18 240 6 480 Printing and stationery 1 849 Property rental 48 000 Provision for doubtful debts at 1 C25 1 January 2014