Imagine you are the financial accountant of Happiness Ltd. You have the following final balances for the different accounts on 31^st December 2021 (the accounting-year end):

	Value ()
Buildings	300,000
Transportation element	148,000
Accumulated depreciation (buildings) at 01/01/2021	52,500
Accumulated depreciation (transportation element) at 01/01/2021	36,800
Salary expense	16,500
Share premium	7,200
Capital	20,000
Retained earnings at 31/12/2020	97,900
Long term debt	190,300
Cash	60,000
Trade receivables	62,500
Inventory at 31/12/2020	40,000
Purchases	10,000
Sales	200,000
Allowance for trade receivables	2,500
Accrued Expenses	19,500
Trade payables	10,300

Required:

a)Considering the following additional information, prepare the Income Statement for Happiness Ltd. on 31/12/2021.

Additional Information:

1) Inventory equals 20,500 on 31/12/2021.

1.The accrued expenses in the trial balance correspond to the electricity expense for the year that has not been paid in the current accounting period. The amount of salary expense from the trial balance corresponds to the salaries of the year that have not been paid during the current accounting period.

2.Non-current assets are depreciated using the straight-line method. Buildings have a residual value of 0 and a useful life of 20 years. The transportation element has a residual value of 10,000 and a useful life of 10 years.

3.On 31/12/2021 the transportation element is sold for 100,000.

4.Managers of Happiness Ltd. estimate that the provision for doubtful debts needs to equal the 20% of the trade receivables final balance.

5.On 30/06/2021, Happiness Ltd. acquires on cash an insurance for 24 months for 32,400 paid on cash.

6.Corporate tax percentage is 19%.

7. considering that 3,000 of purchases have not been paid on cash during the current accounting period 2021

Required : prepare the Statement of Financial Position for Happiness Ltd. on 31/12/2021.