5.3 The following is the trial balance of a hotel owned by Sandy Chan as at 31 December 2015: Inventory (1 Jan 2015) Purchases Sales Fuel and light Rent and rates Advertising Wages and salaries. Motor expenses Repairs to furniture Drawings Capital (1 Jan 2015) Premises (at cost) Furniture and equipment (at cost) Motor van (at cost) Accumulated Depreciation-Premises (1 Jan 2015) Accumulated Depreciation - Furniture and equipment (1 Jan 2015) Accumulated Depreciation - Motor van (1 Jan 2015) China, linen and cutlery (1 Jan 2015) Accounts receivable Cash at bank Cash in hand Accounts payable Notes: Dr. Cr. $ 85 37,500 348,480 1,057,380 28,920 36,990 21,600 312,330 6,450 13,500 45,900 747,000 400,000 360,000 200,000 185,000 137,100 100,000 42,810 38,250 131,250 240,000 37,500 2,263,980 2,263,980 (1) Inventory at 31 December 2015 amounted to $29,000 at cost. Net realizable value was estimated at $28,350. (2) Depreciation is to be provided as follows: (1) (11) (iii) (iv) Premises Furniture and equipment Motor van China, linen and cutlery 10% on cost 20% on reducing balance basis straight-line (useful life: 4 years) revaluated at $37,500 Required: (a) Prepare the Income Statement for the year ended 31 December 2015. (b) Prepare the Statement of Financial Position as at 31 December 2015