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 at at December 31, 2020

The following trial balance was obtained from the books of Raheem Sterling as at December 31, 2020 : DR Sales Wages and Salaries Carriage Outwards CR 745,000 56,000 6,500 Carriage Inwards Loan Interest Creditors 12,000 42,000 70,500 Returns Rent Received Purchases Debtors Provision for Bad Debts Telephone Charges Bank 8,000 12,000 70,000 558,150 62,000 4,200 21,000 11,040 Cash 15,500 Land and Building 610,000 Provision for Depreciation on Building 45,000 Motor Vehicle 280,000 Provision for Depreciation on Motor Vehicle 51,200 Machinery and Equipment 286,000 Provision for Depreciation on Machinery & Equipment 48,200 Capital 485,000 Drawings 27,500 10% Loan 500,000 Building Repairs 21,240 Commission Received 41,000 Opening Stock 58,500 Insurance Bad Debts 13,500 5,250 2,083,140 2,083,140 Additional Notes a. Stock at year end was valued at $91,150 b. Wages is prepaid by $9,000 c. Insurance is owing by $1,500 d. During the year the owner took goods values at $7,500. This was not yet recorded e. The rent received is prepaid by $20,000 f. Commission income is owing by $9,000 g. The provision for bad debts is to be adjusted to 5% of debtors h. Depreciation charges are to be applied as follows ASSET Land and Building Motor Vehicle Machinery and Equipment RATE METHOD 10% Straight Line 10% Straight Line 10% Reducing Balance