The following balances are taken from the books of George Anderson Inc. at the end of his first-year trading on 31 December 2014.

The following additional information is available:

Inventory at 31 December 2014 was valued at $4500.

Required:

(a) Prepare income statement for the year ended 31 December 2014.

(b) Prepare a balance sheet as at 31 December 2014.

Debit Credit $ Sales 40000 Purchases 18500 5100 1300 Wages and salaries Repairs and maintenance Heating and lighting General expenses 900 1200 Insurance 800 2200 1300 4100 3400 Cash at bank Cash in hand Trade receivables Trade payables Premises Fixtures and fittings Motor vehicle Capital at 1 January 2014 30000 10000 8000 52000 Drawings 12000 95400 95400