1. The following balances were extracted from the books of Michelle OConnor as at December 31, 2015. She is a sole trader who operates a clothing wholesale in May Pen. Michelle rented Cecil Bryan a very small section of the wholesale for $6,000 per month.

PARTICULARS	DR	CR
Sales		180,000
Capital		104,000
Stock at January 1, 2015	9,700
Purchases	58,200
Returns	10,180	8,730
Wages	88,520
Utilities	17,900
Insurance	40,000
Discounts	3,400	2,200
Motor Vehicle	40,000
Provision for Depreciation - Motor Vehicle		10,840
Drawings	12,000
Loan		105,000
Building	70,000
Provision for Depreciation - Building		33,600
Debtors	13,300
Sundry Expenses	6,400
Provision for bad debts		1,190
Commission Received		0
Land	160,000
Carriage Outwards	1,800
Bad debts	9,600
Carriage Inwards	2,200
Rental Income (from Cecil Bryan)		65,000
Creditors		15,500
Bank		21,300
Cash	4,160
	547,360	547,360

Year-end notes:

a) Buildings are to be depreciated using the straight-line method at a rate of 8% per annum; and the reducing balance method is to be used to depreciate motor vehicles at a rate of 10% per annum.

b) Wages are owing at the yearend amounted to $11,480

c) The insurance paid represents fixed monthly premiums for the period January 1, 2015 to March 31, 2016

d) Stock at December 31, 2015 $8,300, however it appears that an additional amount, $1,700 was found in a store room. The amount was deemed material and should be accounted for.

e) On October 1, 2015, the owner took goods amounting to $1,000 from the warehouse and continued to do so at the beginning of every month up to February 2016.

f) The provision for bad debts is to be revised to 5% of debtors at the end of the financial year of the business

Required:

1. Prepare the Statement of Profit or Loss for Michelle OConnor.