1. Prepare the Statement of Financial Position at December 31, 2020

The following trial balance was obtained from the books of Raheem Sterling as at December 31, 2020 :

	DR	CR
Sales		745,000
Wages and Salaries	56,000
Carriage Outwards	6,500
Carriage Inwards	12,000
Loan Interest	42,000
Creditors		70,500
Returns	8,000	12,000
Rent Received		70,000
Purchases	558,150
Debtors	62,000
Provision for Bad Debts		4,200
Telephone Charges	21,000
Bank		11,040
Cash	15,500
Land and Building	610,000
Provision for Depreciation on Building		45,000
Motor Vehicle	280,000
Provision for Depreciation on Motor Vehicle		51,200
Machinery and Equipment	286,000
Provision for Depreciation on Machinery & Equipment		48,200
Capital		485,000
Drawings	27,500
10% Loan		500,000
Building Repairs	21,240
Commission Received		41,000
Opening Stock	58,500
Insurance	13,500
Bad Debts	5,250
	2,083,140	2,083,140

Additional Notes

1. Stock at year end was valued at $91,150
2. Wages is prepaid by $9,000
3. Insurance is owing by $1,500
4. During the year the owner took goods values at $7,500. This was not yet recorded
5. The rent received is prepaid by $20,000
6. Commission income is owing by $9,000
7. The provision for bad debts is to be adjusted to 5% of debtors
8. Depreciation charges are to be applied as follows

ASSET	RATE	METHOD
Land and Building	10%	Straight Line
Motor Vehicle	10%	Straight Line
Machinery and Equipment	10%	Reducing Balance