prepare income statement

Question 1 The following balance was extracted from the books of Goodluck Enterprises on 31 December 2014 Details s Purchases 51,400 Drawings 4.800 Office Building at cost 30,000 Machine at valuation 4.500 Fixtures and fittings at cost 5.400 Provision for depreciation of fixtures and fittings 1.080 Inventory 1 January 2014 7,500 Account receivables 4.900 Bad debts SO Bad debts recovered 150 Provision for doubtful debts 116 Carriage outwards 700 Revenue 58.200 Owner's Equity 1 January 2014 55.686 Purchases returns 2.300 Trade payables 5.100 Bank 5.240 Administration expenses 7,960 Discount allowed 182 Additional information: a. Goodluck Enterprises did not value the inventory on 31* December 2014 due to an oversight. The gross profit margin is 20%. b. The provision for doubtful debts is to be maintained at 2% of Account receivables. c. Machine was valued at $3800 on 31 December 2014. No Machine was bought or sold during the year ended 31 December 2014. d. Fixtures and fittings are to be depreciated by 10% per annum on cost