Question 14 (10 marks)

Ian Norman is the accountant for Faldos Golf Academy. Ian recently completed his accounting degree and the owner of the business, Greg Faldo, has asked Ian to prepare a Statement of Financial Position as at 31^st December 2021 for a presentation to the board of directors. Below is the Statement of Financial Position prepared by Ian using the account format. Greg is concerned that the Statement of Financial Position is not correct and has asked you to review it.

Faldos Golf Academy

Statement of Financial Position

as at 31^st December 2021

Assets	$	Liabilities & Owners Equity	$
Loan Payable ( due to be repaid in 2023)	18,800	Accumulated Depreciation Equipment	5,000
Prepaid Insurance	5,700	Accounts Receivable	12,400
Profit for the year	7,200	Capital G. Faldo	36,000
Equipment	45,000	Cash at bank	19,200
Accounts Payable	10,100	Wages Payable	5,200

Required:

Assume that the account balances Ian has used are correct. Prepare a corrected Statement of Financial Position for the business using the narrative format as at 31st December 2021.