Question 1. (60 points) The following trial balance has been extracted from the ledger of Mr Yousef, a sole trader. TRIAL BALANCE AS AT 31 December 20X9 Dr Cr $ $ Sales 138,000 Purchases 78,000 Delivery expenses 6,500 Drawings 20,200 Prepayment for insurance 3,300 Postage and stationery 7,700 Advertising 1,100 Salaries and wages 27,000 Irrecoverable debts 580 Receivables 15,000 Payables 6,000 Cash on hand 1,200 Cash at bank 11,500 Inventory as at 1 January 20X9 14,500 Equipment at cost 37,500 Accumulated depreciation 12,800 Capital 47,280 6% Loan 20,000 Total 224,080 224,080 The following additional information as at 31 December 20x9 is available. 1 The bill for telephone expense is received quarterly in arrears. You have received a bill for a telephone expense on 1st of February in the amount of $450. 2 Prepayment on Insurance was made on 1st of August 2019. 3 $2,500 of delivery expenses represents delivery on purchases made and the rest is for the delivery of the products that we have sold 4 Equipment has to be depreciated. The useful life of the Equipment is 10 years with the salvage value of $2,500. The method of depreciation is a declining balance method. 5 The allowance for receivables has to be equal to 5% of Receivable balance 6 Inventory at the close of business has been valued at $5,000 7. Salary for December of $3,100 has not been accrued by the accountant. 8. The sales figure includes $2,000, for which the services have not actually been performed. 9. Interest expense for the year was $700. 10. The accountant forgot to show the receipt of cash of $1,000 from your creditors. 11. The Loan was obtained on 1st of November 20X9. Required (a) Prepare a statement of profit or loss for the year ended 31 December 20x9 (30 points) (b) Prepare a statement of financial position as at that date. (30 Points)