Prepare the Income Statement for the year ended 31 December 2017, and the Statement of Financial Position as at 31 December 2017 for Pat ONeill given the following trial balance and additional information:

As at 31 Dec 2016	Dr	Cr
Land	220,000
Vehicles - cost	56,000
Vehicles - Accumulated depreciation		11,200
Equipment - cost	24,000
Equipment accumulated depreciation		7,200
Inventory at 1 Jan	74,000
Accounts Receivable	85,000
Bank overdraft		16,250
Accounts Payable		43,500
Sales		750,000
Purchases	465,000
Wages & Salaries	87,000
Motor expenses	26,500
Telephone	8,600
Light and Heat	17,410
Rates	6,900

	Dr	Cr
Insurance	13,400
Bank interest	18,950
Legal fees	15,000
Accountancy charges	3,200
Rental income from renting office		12,000
Miscellaneous expenses	8,470
VAT refund due from Revenue	2,200
Drawings	20,600
Capital		162,080
Long term Bank Loan		150,000
Total	1,152.230	1,152,230

Depreciation to be charged as follows:

lVehicles 20% of cost, Equipment 10% of cost

Inventory at 31 Dec 2017 was 68,000

As at 31 Dec 2017:

linsurance prepaid of 2,200

lbank interest due of 5,600

lmiscellaneous expenses due of 4,200

Bad debts of 5,500 to be written off.

Allowance for doubtful debts of 2% of remaining accounts receivable (after bad debts expense) to be created.