Required:

The following is the trial balance of Akwasi Frimpong Trading as at 30^th June 2013. Draw up an income statement for the period ended 30^th June 2013 and a statement of financial position as at that date. Take note of the additional information.

	Dr	Cr
Discount received Discount allowed Inventory 1 July 2012 Carriage outwards Carriage inwards Sales returns Purchases returns Purchases Sales Salaries and wages Rent and rates Insurance Motor expenses Telephone and internet Electricity General expenses Buildings Motor vehicles at cost Fixtures and fittings Accounts receivable Accounts payable Cash at bank Drawings Capital Accumulated Depreciation Motor vehicles (01/07/2012)	2,500 14,208 1,200 1,860 1,230 73,244 23,172 2,824 468 2,656 2,624 996 1,884 50,000 12,000 2,100 23,376 12,192 7,200	3,000 1,932 121,600 20,386 86,816 2,000
Total	235,734	235,734

ADDITIONAL INFORMATION:

1. Inventory at 30 June 2013 was valued as 12,000
2. Electricity cost of 800 had been omitted from the books and remains unpaid
3. Rent paid includes an amount of 1,000 relating to the next trading periods.
4. Motor van is depreciated on a straight line method basis, and it is estimated to have a useful life of six years.
5. Management recognises that debt of 600 may not be recovered and should be accounted.