During 2022, the following transactions took place:

1. The owners withdrew equity in the form of cash of $23,00.
2. Premises were rented at an annual rental of $20,000. During the year, rent of $25,000 was paid to the owner of the premises.
3. Rates on the premises were paid during the year for the period 1 April 2022 to 31 March 2023 and amounted to $2,000.
4. New machinery (a non-current asset) was bought on 1 January 2022 for $15,000. The business uses the reducing-balance method of depreciation for non-current assets at the rate of 30 per cent each year.
5. Wages totalling $23,800 were paid during the year. At the end of the year, the business owed $860 of wages.
6. Electricity bills for the four quarters of the year were paid, totalling $2,700.
7. Inventories totalling $143,000 were bought on credit.
8. Inventories totalling $12,000 were bought for cash.
9. Cash sales revenue totaled $211,000 (cost $127,000).
10. Sales revenue on credit totalled 42,000 (cost $25,000).
11. Receipts from trade receivables totalled $15,000.
12. Payments to trade payables totalled $86,000.
13. Inventories which had been purchased for $8,000 have been damaged and are unsaleable.

Required

Prepare an income statement for the year ended 31 December 2022 and a statement of financial position as at that date.

(Show workings in details). Record the above transaction in the Journal and T-accounts.

Ahmad Limited Statement of financial position as at 31 December 2022 $ ASSETS Non-current assets Machinery (Net) carrying amount Current assets Inventories 12,200 Trade receivables 21,300 \begin{tabular}{lr} Prepaid expenses (rates) & 400 \\ Cash & 8,300 \\ \cline { 2 - 3 } Total assets & 42,200 \\ \end{tabular} EQUITY AND LIABILITIES Equity Original 25,000 Retained earnings Current liabilities Trade payables Accrued expenses (wages) Total equity and liabilities 23,90048,90016,9001,70018,60067,500