Prepare This-Is-A-Blast Statement of Profit or Loss for the period ended 31 December 2014 and Statement of Financial Position as at that date.

This-Is-A-Blast's unadjusted Trial Balance as at 31 December 2014

Particulars Dr Cr

Capital 200,000

Drawings 12,000

Bank balance 5,500

Cash in hand 7,000

Accounts receivables 40,000

Accounts payable 55,000

Inventory: Opening 18,000

Premises 150,000

Motor Vehicle 90,000

Fixtures and Fittings 65,000

Sales 255,600

Purchases 130,000

Returns inwards 7,500

Carriage outwards 4,500

Carriage inwards 6,500

Returns outwards 11,500

Motor expenses 10,400

Rent Received 20,000

Telephone charges 12,000

Wages and salaries 34,000

Insurance 10,600

Commission Received 14,800

Bad Debt 2,500

Provision for depreciation: Motor Vehicle 20,000

Provision for depreciation: Fixtures and Fittings 25,000

Provision for doubtful debt 3,600

Total 605,500 605,500

Additional information

a) Closing Inventory $25,000

b) Wages and Salaries prepaid $2,500

c) Commission Received owing $2,000

d) Insurance premium incurred is $1,000 per month commencing 1st March 2014.

e) Provision for doubtful debt is to be adjusted to 5% of Accounts Receivable

f) Depreciation is to be charged on Fixtures and Fittings at 10% using the Reducing Balance Method and on Motor Vehicle at 10% using the Straight Line Method