1.Prepare the journal entries for the transactions above.

2.Prepare Peter's income statement for the year ended 31 December 2018.

3.Prepare Peter's balance sheet at 31 December 2018.

The following trial balance was extracted from the books of Peter at 31 December 2018: $ $ Land and Buildings 100,000 Equipment 44,000 Debtor 14,000 Creditor 6,300 Bank 5,500 Sales 295,000 Discount received 5,000 Purchases 190,000 Inventory at 1 Jan 2018 30,000 Wages 66,000 Carriage outwards 600 Heating and lighting 5,100 Advertising 14,000 Drawings 27,100 Rent revenue 40,000 Capital 150,000 496300 496,300 Additional information 1. Inventory at 31 December 2018: $42,000 2. Land and buildings at cost is made up as follows: land $20,000, buildings $80,000. 3. Buildings are depreciated at 4% per annum on the straight-line basis. 4. Equipment planned to be used for 5 years and the estimated that it will then be sold for $4,000. 5. At 31 December, $1,800 was owing for heating and lighting. 6. At 31 December 2018, $6,000 of the cost of advertising prepaid to 1 May 2019. 7. At 31 December 2018, rent revenue includes $5,000 was received in advance for the first month of 2019. 8. A bad debt of $2,000 is to be written off and a provision of 2% of debtors for doubtful debts exists at 31 December 2018. 9. In the year ended 31 December 2018, Peter had withdrawn $500 for his personal use