Statement of Financial Position as at 31 December 2017:

Statement of financial position Current assets Cash 16,400 Prepaid expenses (rates) 800 Trade receivables 42,800 Inventories 24,400 84,400 Non-current assets Machinery 50,400 Total assets 134,800 EQUITY AND LIABILITIES Current liabilities Accounts payable 34,200 Accrued expenses (wages) 3,600 37,800 Equity Original 52,000 Retained earnings 45,000 97,000 Total equity and liabilities 134,800 Print Done2018 Transactions The owners withdrew equity in the form of cash of $46,000. 2 Premises were rented at an annual rental of $38,000. During the year, rent of $48,000 was paid to the owner of the premises. 3 Rates on the premises were paid during the year for the period 1 April 2018 to 31 March 2019 and amounted to $4,200. 4 Some machinery (a non-current asset), which was bought on 1 January 2017 for $27,000, has proved to be unsatisfactory. It was part-exchanged for some new machinery on 1 January 2018, and A1A Associates paid a cash amount of $12,000. The new machinery would have cost $33,000 had the business bought it without the trade-in. 5 Wages totalling $48,600 were paid during the year. At the end of the year, the business owed $1,780 of wages. 6 Electricity bills for the four quarters of the year were paid totalling $5, 100. 7 Inventories totalling $290,000 were bought on credit. 8 Inventories totalling $27,000 were bought for cash. 9 Sales revenue on credit totalled $424,000 (cost $256,000). 10 Cash sales revenue totalled $88,000 (cost $44,000). 11 Receipts from trade receivables totalled $396,000. 12 Payments to trade payables totalled $312,000. 13 Van running expenses paid totalled $32,000. Print Done