*NOTE: Need to prepare Income statement and balance sheet

QUESTION:

Prepare Income Statement and a Balance Sheet from below Trial Balance.

Trial Balance:

stock on 1st Jan 2020 7,000

carriage outward 0

carriage inward 0

returns inward 0

returns outward 0

purchases 24,000

sales 42,000

salaries and wages 7,000

rent 600

building 15,800

Van 0

Furniture 0

Account receivable 7,000

Account payable 5,500

Cash 3,900

Drawing 4,200

Capital 16,000

Short Term Loan 6000

closing stock 31 Dec 2020 6,000