Bill Stern commenced in business on 1 January 2018. On that date he lodged 150,000 of his savings into the business bank account. During the year ended 31 December 2018 the following transactions occurred: Transactions Amount Purchase of machinery Purchase of stock on credit Term Loan Credit Sales Rent and rates paid Wages paid Cash received from debtors Payments to creditors for stock Drawings Term loan interest Term loan repayments (incl. interest) 120,000 250,000 130,000 470,000 50,000 90,000 360,000 140,000 40,000 12,000 20,000 Notes: Stock at the 31 December 2018 was valued at 55,000. 2. All money received by the business is lodged to the business bank account. 3. All payments are made by cheque or bank transfer. 4. Depreciation is charged at a rate of 25% p.a. on cost. 1. Required: (a). Calculate the profit for the year ended 31 December 2018. (b) Prepare calculations of the balances at 31 December 2018 for the bank account, debtors, creditors and loan account. (c) Prepare the balance sheet of the business at 31 December 2018. (10 mark (10 mark (10 mark