Add-ins Media LILINS Tom started business as T Ltd on 1 January 2020 with $20,000, 60% from Tom's own savings and 40% from a corporate bank loan, repayable in equal annual instalments of $6585 over a four year term. Each annual instalment will comprise an interest component and a principal component. The interest rate is 12% per annum. The loan payoff table is given below: Annual instalment paid back by borrower at end of year Amount of loan principal included in Annual instalment $ Amount of annual interest included in Annual instalment $ Loan principal at start of year IS Year Loan principal at end of year $ Interest at end of year S 20,000 2400 6585 4185 2400 15,815 15,815 1898 6585 4687 1898 11,128 1.1.20- 31.12.20 1.1.21- 31.12.21 1.1.22 31.12.22 1.1.23- 31.12.23 11,128 1335 6585 5250 1335 5,878 5,878 1707 6585 5878 O 707 During his first year of trading T Ltd purchased land and equipment for $10,000 cash down, broken down as follows: Equipment $5,000 (5 year life, no residual value) and Land 55.000! T Ltd also purchased 5,000 units at S1 each, of which 30% was still owed at vear end. T Ltd sold 4,000 units at $3 per unit. At 31 December 2017, T Ltd had trade debtors of $2,000. T Ltd employs one sales person and pays him $4,000 a year. A provision for income Tax levied at 15% on accounting profits is to be made. During his first year of trading, T Ltd purchased land and equipment for $10,000 cash down, broken down as follows: Equipment $5,000 (5 year life, no residual value) and Land $5,000. T Ltd also purchased 5,000 units at $1 each, of which 30% was still owed at year end. T Ltd sold 4,000 units at $3 per unit. At 31 December 2017, T Ltd had trade debtors of $2,000. T Ltd employs one sales person and pays him $4,000 a year. A provision for income Tax levied at 15% on accounting profits is to be made. Required: Prepare for T Ltd the statement of financial position as at 31 December 2020 and the statement of profit or loss for the year ended 31 December 2020. (25 marks)