LC, a furniture trading company, extracted the following balances from its ledger on 31 December 2021:

$ $

Purchases 60,000

Sales 210,500

Returns inwards 940

Carriage inwards 2,500

Inventory, 1 January 2021 20,800

Salaries 60,300

Rent 80,000

Heating bills 5,000

Phone bills 5,400

Building 22,400

Computer 60,500

Printer 5,800

Accounts receivable 60,200

Accounts payable 110,530

Hotel expense 5,700

Capital 76,910

Cash in hand 400

Drawings 8,000 _______

397940 397940

The following additional information as at 31 December 2021 is available:

a) Inventory was valued 8,000$

Required:

Prepare an income statement for the year ended 31 December 2021 and the statement of financial position (balance sheet) as at 31 December 2021