From the trial balance below of John Brown, store owner, prepare an income statement for the year ending 31 December 2023, and a balance sheet as at that date, also taking into consideration the six adjustments shown underneath:

Adjustments needed:
(i) Closing inventory on 31 December 2023 was \(£ 120,000\) at cost.
(ii) Accrued wages \(£ 5,000\).
(iii) Rates prepaid \(£ 500\).
(iv) The allowance for doubtful debts is to be set at \(10 \%\) of trade receivables.
(v) Telephone charges accrued \(£ 220\).
(vi) Depreciate shop fittings at \(10 \%\) per annum, and van at \(20 \%\) per annum, on carrying amount.

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Trial balance at 31 December 2023 Sales Purchases Returns inwards Returns outwards Inventory at 1 January 2023 Allowance for doubtful debts at 1 January 2023 Wages & salaries Rates Telephone Shop fittings at carrying amount at 1 January 2023 Van at carrying amount at 1 January Trade receivables and trade payables Bad debts expense Capital Cash at bank Drawings Dr 350,000 5,000 100,000 30,000 6,000 1,000 40,000 30,000 9,800 200 3,000 18,000 593,000 Cr 400,000 6,200 800 7,000 179,000 593,000