S S Receipts Trade receivables Payments 430,100 Trade payables 40,000 Electricity 272,500 Debit card 4,500 Rates and rent 23.600 25,000 Loan principal Drawings Computer equipment 1.250 150.000 Overdraft interest 750 Salaries & wages 26.000 Accounting fee 7,500 470,100 511,100 2. The bank account had a favourable balance on December 31, 2020 of $47,900 before considering Note 3(e) and Note 6 below. 3. During the year: a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to $6,900. c. The financial year a trade debt of $1,200 owed by Lottie Graham was off-set against the $2,000 owing to the same Lottie Graham a trade goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7). e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020. Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal. 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principal is being paid in equal instalments of $25.000 commencing on September 30, 2020. September 30, 2021 and September 30, 2022. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: December 31, 2019 December 31, 2020 S S Inventory 41,000 48,500 Trade receivables 29,300 35,750 Prepaid rent 500 600 Fixtures (net) 20,000 19,000 Trade payables 19,500 19,000 Debit card receivables 1,325 750 g. Prepare comparatively the Statement of Financial Position as at the year ended December 31. 2020 S S Receipts Trade receivables Payments 430,100 Trade payables 40,000 Electricity 272,500 Debit card 4,500 Rates and rent 23.600 25,000 Loan principal Drawings Computer equipment 1.250 150.000 Overdraft interest 750 Salaries & wages 26.000 Accounting fee 7,500 470,100 511,100 2. The bank account had a favourable balance on December 31, 2020 of $47,900 before considering Note 3(e) and Note 6 below. 3. During the year: a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to $6,900. c. The financial year a trade debt of $1,200 owed by Lottie Graham was off-set against the $2,000 owing to the same Lottie Graham a trade goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7). e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020. Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal. 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principal is being paid in equal instalments of $25.000 commencing on September 30, 2020. September 30, 2021 and September 30, 2022. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: December 31, 2019 December 31, 2020 S S Inventory 41,000 48,500 Trade receivables 29,300 35,750 Prepaid rent 500 600 Fixtures (net) 20,000 19,000 Trade payables 19,500 19,000 Debit card receivables 1,325 750 g. Prepare comparatively the Statement of Financial Position as at the year ended December 31. 2020