Notes: Where you have insurance prepaid owing it should be insurance prepaid. Can you show calculations where needed and explanation.

The following trial balance was obtained from the books of Maria Romanetti as at December 31, 2020: DETAILS DR CR Land and Building 420,000 Provision for Depreciation on Building 63,000 Motor Vehicle 330,000 Provision for Depreciation on Motor Vehicle 62,500 290,000 Machinery and Equipment Provision for Depreciation on Machinery & Equipment 54,000 Capital 450,000 Drawings 32,000 10% Loan 460,000 Motor Vehicle Repairs 26,400 Commission Received 55,000 Opening Stock 62,000 Insurance 24,500 Bad Debts 7,000 Sales 560,000 Wages and Salaries 64,000 Carriage Outwards 12,500 Carriage Inwards 13,000 Loan Interest 36,000 Creditors 55,400 Returns 14,000 8,000 Rent Received 55,000 Purchases 420,000 Debtors 60,000 Provision for Bad Debts 2,200 Telephone Charges 18,000 Bank 10,800 Cash 6,500 1,835,900 1,835,900 Additional notes: a. b. c. d. Stock at year end was valued at $105,000. Wages is owing by $16,000. Insurance is prepaid owing by $4,500. During the year the owner took goods values at $3,000. This was not yet recorded. The rent received is owing by $25,000. Commission income is prepaid by $15,000. The provision for bad debts is to be adjusted to 10% of debtors. Depreciation charges are to be applied as follows: e. f. g. h. ASSET RATE METHOD Land and Building Motor Vehicle 5% Straight Line 5% Reducing Balance 10% Straight Line Machinery and Equipment Required: Prepare the following: a) The Statement of Profit and Loss for the year ending December 31, 2020. (27 marks) b) The Statement of Financial Position as at December 31, 2020. (23 marks)