Additional information:

1. Inventory as at 31 December 2022 was valued at $40,000

2. Included in the carriage outwards is a carriage inwards amounting to $1,320.

3. Depreciation for the year is to be provided as follows: Office equipment Straight line method, 10% per annum Motor vehicles Reducing balance method, 15% per annum

4. A fixed deposit was invested on 1 July 2022. The half-year interest was not yet received.

5. One of the employees was given an advance salary of $700. This amount has been recorded in the salary and wages expense.

6. The owner took goods worth $2,000 and cash $1,500 for personal use.

7. The following expenses are still outstanding as at 31 December 2022. General expenses $600 Utilities $250

Required:

a) Prepare the Statement of profit or loss for the year ended 31 December 2022.

b) Prepare the Statement of financial position as at 31 December 2022.

The following Trial balance was extracted from the Books of Mega Enterprise as at 31 December 2022