Additional information: 1. Inventory on 31 December 2019 amounted to $83 000. 2. No property or equipment was purchased during the year. 3. The long- term borrowing is from Mukando bank and is repayable in four equal annual payments, with the first on 31 January 2020. The interest rate is 10% per annum and is secured by a personal guarantee of the owner. 4. The owner deposited an additional amount of $5 000 during the year. 5. Depreciation on machinery and vehicles is calculated at 20% per annum on the straight-line basis/method. 6. The fixed deposit is with Posvo Bank for 24 months at 10%. Required: Prepare the statement of financial position, statement of profit or loss and other comprehensive income and statement of changes in equity of Chipson enterprises as at 31 December 2019. [50 Marks]

The following is the post-adjustment trial balance of Chipson Enterprises as at 31 December 2019 Credit S Debit $ 14 000 10 500 2 800 2 800 2 900 26 500 50 000 9 000 1 800 3 400 63 000 Accounting fees Advertising Allowance for credit losses Bank charges Bank interest Bank overdraft Capital Carriage on purchases Cleaning materials Credit losses Trade payables control Trade receivables control Delivery charges Depreciation- machinery Depreciation -vehicles Drawings Entertainment Fixed deposit Insurance Interest on fixed deposit Interest on long-term borrowing Inventory- 1 January 2019 56 000 14 800 7 000 4 000 12 000 3 000 50 000 14 800 5 000 3 820 72 000 38 200 cost 35 000 14 000 Long term borrowing Machinery Accumulated depreciation: Machinery Printing and stationary Purchases Rent paid Repairs and maintenance Salaries and wages Sales Telephone expenses Vehicles at cost Accumulated depreciation: vehicles Vehicle expenses 4 300 390 000 72 000 3880 144 000 765 000 12 900 20 000 8 000 8 100 972 500 972 500