Sheila is a sole trader. She pays all the sales receipts into the business bank account. She provided her accountant with the following information for the year ended 31 December 2018

Bank account summary for the year ended 31 December 2018

DR

Rent received   16 600   / Trade receivables 204 200 /   Cash sales   19 510

CR

Balance b/d   6 520 / Trade payables    123 460 / General expenses    24 000 / Wages     31 560   / Motor vehicles   18 200 / Equipment   19 400 / Drawings   25 560

Sheila’s remaining assets and liabilities were:

	1-Jan-18	31-Dec-18
Inventory (at cost)	21 300	16 400
Premises (at cost)	100 000	100 000
Equipment (net book value)	26 400	25 600
Motor vehicles (net book value)	66 000	69 200
Trade receivables	24 400	27 600
Trade payables	16 500	18 470
General expenses prepaid	1 100	900
Rent received prepaid	800	-
Rent received owing	-	1 300
Wages owing	2 300	600

Additional information:
1 Sheila allowed her customers discounts of $4300.
2 Discounts received from suppliers were $3300.
3 Sheila has decided to create a provision for doubtful debts of 2% of the trade receivables outstanding at 31 December 2018.
4 General expenses in the bank account summary include an amount of $660 which relates to the payment of Sheila’s private house insurance.
5 Sheila had taken goods at a cost price of $3600 for her personal use.

Required: (a)Income Statement for the year ended 31 December 2018 [17]
      (b) Statement of Financial Position at 31 December 2018 [13]