EXERCISE 3.5 XYZ Enterprise is a kitchenware retailer based in Jurong West. The following balances are taken directly from their books for the fiscal year ending 31 December 2010. XYZ Enterprise Trial Balances as at 31 December 2010 Debit (SGD) Credit (SGD) Capital 110,000 Shop premises at cost 71,500 Fixtures & fittings at cost 48,000 Motor vehicles at cost 15,000 Trade receivables' and trade payables 40,920 30,250 Sales 82,880 Purchases 39,380 Cash in hand 19,800 Cash at bank 49,500 Discounts 4,620 7,040 Returns 4,180 4,730 Inventories (as at 1 January 2010) 31,020 Carriage inwards 5,940 Insurance on purchase of goods 1,100 Carriage outwards 10,175 10% Loan from DDE Bank 119,900 8% Fixed Deposit with HKK Bank 38,500 Rent and rates 1.980 Salaries and wages 4,950 Water and electricity 935 Allowance for doubtful debts (as at 1 January 2010) 1,650 Stationery 1,100 Repairs and maintenance 1,485 Drawings 1,595 Interest on fixed deposit with HKK Bank 1,540 Accumulated depreciation (as at 1 January 2010): Shop premises 14,300 Fixtures & fittings 14,890 Motor vehicles 4,500 391,680 391,680 Additional information: 1. As of 31 December 2010. inventory was valued at SGD33,220. 2. 3. On 1 July 2010, a loan from DDE Bank was obtained. At the end of the accounting period, no interest was paid on this loan. Depreciation is to be provided as follows: Shop premises 10% on straight line method Fixtures and fittings 10% on reducing balance method Motor vehicles 15% on straight line method 4 For the period, the following adjustments should be considered:: Accruals SGD Prepayments SGD Salaries and wages 1,650 Interest on fixed deposit Water and electricity 1,540 125 Insurance on purchase of goods Stationery 190 80 5. SGD450 payment for the repair of the owner's private car is included in the repair and maintenance. 6 One of the customers had been declared bankrupt, and SGD420 was to be repaid. Additionally. the company maintains a 6% allowance for doubtful debts on net trade receivables. Required: Prepare for XYZ Enterprise, a. the Statement of Profit or Loss for the year ended 31 December 2010, and 0. the Statement of Financial Position as at 31 December 2010. Note: Use vertical format presentation.