Additional information:

1. Depreciations for the building and equipment are RM5,000 and RM4,500 respectively.
2. Ending inventory as at 31 December 2018 is RM44,450.
3. Interest on bank loan of RM200 which is due on 31 December is not yet paid.
4. Unpaid salary for the month of December is RM5,500.
5. Prepaid insurance is RM1,000.
6. Accrued utility expenses as at 31 December is RM2,700.
7. 5% of the debt is assumed to be uncollectible.

Required:

1. Prepare an Income Statement for the year ended 31 December 2019.
2. Prepare a Statement of Financial Position as at 31 December 2019.

A trial balance of Salmi Enterprise as at 31 December 2019 is shown below: Salmi Enterprise Trial balance as at 31 December 2019 Credit (RM) Debit (RM) 12,700 18,800 45,000 46,000 98,500 27,000 41,750 21,200 10,000 34,500 133,900 Cash Accounts receivables Inventory (1 January 2019) Land Buildings Accumulated depreciation - Building Equipment Accumulated depreciation - Equipment Bank loan Accounts payable Capital Drawings Sales Purchases Carriage inwards Discount allowed Salary expenses Utility expense Repair expense Petrol expense Insurance expense Total 5,000 452,050 354,400 550 3,050 34,900 9,700 2,950 3,600 1,750 678,650 678.650