Question One Jesse is an antique dealer operating from rented premises. He keeps few accounting records. All his sales and purchases are for cash, except for some sales to other dealers which are made on credit. The following information is available to prepare his income statement for the year ended 31 December 2016. Assets and liabilities as at 31 December 2015 2016 GHS GHS Equipment 1,200 2,000 Inventory 85,000 88,500 Trade receivables 4,800 6,400 Payable for expenses 1,100 1,400 2016 1 Jan Balance - float Cash summary GHS 2016 GHS 100 31 Dec Wages for assistant 15,600 Sundry expenses 8,300 191,400 Purchases of new equipment 2,000 700 Purchases ? Drawings ? Balance c/d 150 31 Dec Cash from sales Proceeds of sale of equipment 192,200 192,200 Jesse keeps cash that is in hand at the end of each week as drawings, subject to the retention of the float. No record has been made of payments for purchases of goods for sale. He fixes his selling price for all items by doubling their cost. He allowed a trade discount of GHS9,000, representing 30% on selling price, for sales to dealers with a normal price of GHS30,000. (GHS30,000 less GHS9,000 discount = GHS21,000). All the equipment held at the beginning of the year was sold for GHS700, and new equipment purchased for GHS2,000. A full year's depreciation is to be charged on the new equipment at 20%, with no depreciation on the items sold. Required: (a) Prepare Jesse's income statement for the year ended 31 December 2016. Your answer should include a detailed calculation of cost of sales. (b) Calculate Jesse's drawings for the year ended 31 December 2016