From the following trial balance of Marc Donald, who operates a health and fitness center, prepare in excel an income statement for the year ended 31 December and a Statement of Financial Position

		Debit	Credit
		$	$
Wages and salaries		102,763.00
Motor expenses		20,000.00
Rent		40,152.00
Rates		15,689.00
Purchases		150,456.00
Revenue/Sales			397,148.00
Carriage inwards		8,900.00
Bad debts		1,200.00
Provision for bad debts at Jan 1			900.00
Insurance		15,000.00
Marketing and sales expenses		4,520.00
Office expenses		5,200.00
Sundry expenses		2,900.00
Furniture and fittings		85,300.00
Plant and equipment		80,309.00
Accumulated Depreciation
Furniture and fittings			42,560.00
Plant and equipment			35,420.00
Light and heat		6,879.00
Inventory as at Jan 1		15,600.00
Drawings		40,000.00
Accounts receivable		40,000.00
Capital			80,000.00
8% Loan			50,000.00
Cash		1,160.00
Accounts payable			20,000.00
Bank			10,000.00
		636,028.00	636,028.00

The following additional information is also available as at 31 December:

The following additional information is available as at 31 January

1. Inventory was valued at $10,250

2. Wages and salaries accrued amounted to $10,250

3. Insurance prepaid amounted to $3,000

4. Provide for depreciation on a straight-line basis as follows:

furniture and fixtures, 12.5% and plant and equipment, 10%

5. A debtor F. Grant who had arranged corporate membership for his staff has been

declared bankrupt and the business has decided to write off the debt as bad

amounting to $1,000

6. The provision for bad debts is to be increased to 5% of accounts receivable