Pooh Bailey has run a furniture business for many years, but has never kept adequate accounting records. However, a need to obtain a loan for the expansion of the business has necessitated the preparation of the final accounts for the year ended December 31, 2022. She is seeking your help in the preparation of the statements.

1. Pooh is able to provide you with the following information about her financial position at January 1, 2022: inventory of furniture $21,420; Trade accounts receivable $20,286; Trade accounts payable $18,196; Buildings $25,200; Fixtures and Fittings $23,400,

2. Building expenses owing $4864, insurance prepaid $ 4,000, bank $8,840 - Cheques drawn during the year were estimated as follows:

Trade payables $54,843, Electricity $12,180,Telephone $11,220, Rent $15,500, Advertising and Promotion $13,360, Fixtures and Fittings $15,600, Insurance $12,392, Building expenses $14,732

. All cash and cheques received were paid into the bank account immediately. Pooh estimates the following receipts for the year - Cheque received from trade receivables $194,500 - Cash Sales $ 32,700

5. Depreciation is to be written-off the buildings at 20% per annum and Fixtures and Fitting at 10 % per annum.

6. At December 31, 2022, building expenses owing was $4,582, and insurance paid in advance was $5,354.

7. Included in the amount paid for Fixtures and fittings were: A table bought for $2,600, which Pooh resold during the year at cost, some wooden shelving (cost $1,500), which Pooh used in building an extension to her personal garage.

8. Cheque written for personal use during the year amounted to $43,000

9. Other balances at 31 December 31, 2020 were: $ Trade accounts receivable 23,042 Trade accounts payable 19,890 Inventory of furniture 28,126

Prepare the following: a) Statement of Affairs as at January 1, 2022 (5 marks)

b) Bank Account (7 marks)

c) Accounts Payable and Accounts Receivable Accounts (7 marks)

d) Income Statement for the year ended 31 December 2022 (20 marks)

e) Balance Sheet as at 31 December 2022 (16 marks)