7. Prepare Jacky, a store owner's statement of profit or loss for the year ended 31 December 2020, and a Statement of Financial Position as at that date, using the following balances that were extracted from his books. Balances as at 31 December 2020 N N Sales 800,000 Salaries and Wages 60,000 Purchases 700,000 Rates 12,000 Sales returns 10,000 Telephone 2,000 Purchases returns 12,400 Shop Fittings @ cost 80,000 Opening Inventory 200,000 Motor Van @ cost 60,000 Provision for doubtful debts 1,600 Accounts Receivables 19,600 Bad debts 400 Accounts Payables 14,000 Capital 358,000 Cash at Bank 6,000 Drawings 36,000 i. Closing inventory at 31 December 2020 N240,000. ii. Accrued: Salaries and Wages N10,000, Telephone N440. iii. Rates prepaid N1000. iv. The provision for doubtful debts to be increased to 10% of accounts receivables. v. Depreciate shop fittings at 10% per annum, and van at 20% per annum, on cost. (30 marks)