Additional information:

1. Inventory as at 31 December 2021 was RM18,000.

2. Out of the total advertising expenses, RM1,000 is prepaid for January and February 2022.

3. Utilities bill amounting to RM1,900 is not yet paid.

4. Repairs and maintenance amounting to RM3,200 is not yet paid.

5. Rent revenue amounting to RM2,000 not yet received.

6. Depreciation is to be provided at the following basis:

a) Van 10% on cost

b) Office equipment 5% on reducing balance method

Required:

a) Statement of Profit or Loss for the year ended 31 December 2021. (10 marks)

b) Statement of Financial Position as at 31 December 2021. (10 marks)

c) Provide two (2) suggestions on how accounting would contribute to the economy. Please elaborate your answer. (4 marks)

ANSWERS MUST BE TYPED, PLEASE ANSWER ASAP.

The following accounts balances were extracted from the books of Street Enterprise for the accounting period ended 31 December 2021. Street Enterprise Trial Balance as at 31 December 2021 RM RM Cash at bank 51,000 Cash in hand 2,000 Carriage inward 2,700 Advertising expense 3,500 Returns 2,000 3,000 Capital 90,000 Van 89,000 Land and building 250,000 Office equipment 44,000 Accumulated depreciation: Van 12,000 Office equipment 5,000 Utilities 3,000 Repair and maintenance 1,800 Drawings 1,200 Accounts payable 28,000 Accounts receivable 6,000 Salaries 20,000 Rent received 10,000 Inventory (1 January 2021) 21,000 Purchases 119,000 Sales 468,200 616,200 616,200