Required :

1. Prepare the statement of profit and loss for the year ending December 31, 2017.

2. prepare the statement of financial position as of December 31, 2017.

Jimmy Cliff has prepared the following trial balance as at December 31, 2017 DETAILS Sales Wages and Salaries Discount Allowed Loan Interest Creditors Return Outwards Rent Received Purchases Debtors Provision for Bad Debts Telephone Charges Bank Cash Land and Building Motor Vehicle Provision for Depreciation on Motor Vehicle Machinery and Equipment Provision for Depreciation on Machinery & Equipment Capital Drawings 10% Loan Building Repairs Commission Received Opening Stock Insurance Office Supplies Additional notes : a. The stock at the end of the year was valued at $64,000 b. The commission was prepaid by $3,000 c. The insurance was owing by $1500 Machinery and Equipment 10% Motor Vehicle 10% DR Reducing Balance Straight Line 68,000 6,200 15,000 310,200 54,350 12,000 18,200 220,000 290,000 132,000 9,000 30,000 d. The provision for bad debts is to be revised to 10% of the debtors e. Provide for depreciation as follows CR 615,000 50,500 8,500 14,000 3,200 79,300 24,000 13,200 250,000 150,000 50,000 34,600 21,500 36,650 1,257,700 1,257,700