Allan Harper is a trader. The following balances were extracted from his books on 31 December 2006 at the end of his first year of trading. Cr(5) (Purchases 2 Sales Salaries and wages 4 Telephone and stationery expense Vehicle running costs General expenses 6 7 Rent and insurance Machines and equipment Fixtures and fittings Motor vehicles Capital 1 January 20x6 Drawings Cash at bank Cash in hand Trade receivables Trade payables Additional Information Inventory at 31 December 20X6 was valued at $22 600. REQUIRED (a) (b) Dr($) 159 700 2 3.9800 2.300 $2600 3 800 7 4600 9:35.000 20 000 to 15 000 Prepare the Statement of profit or loss for the year ended 31 December 20x6. Prepare the Statement of financial position as at 31 December 20x6. 100 800 22 400 2500 1600 14 600 193.900 83 400 97001 191.200