The following financial records were extracted from the books of Daniel King who runs a hospitality events business as at 31 December:

	Debit	Credit
	$	$
Capital		150,000.00
10% Loan		50,000.00
Premises at cost	150,000.00
Equipment at cost	60,000.00
Fixtures and fittings at cost	60,000.00
Motor vehicles at cost	40,000.00
Accumulated depreciation of equipment		40,000.00
Accumulated depreciation of fixtures and fittings		20,000.00
Accumulated depreciation of motor vehicles		10,000.00
Revenue/Sales		190,000.00
Purchases	30,000.00
Accounts payable		30,000.00
Opening inventory	20,000.00
Accounts receivable	40,000.00
Bank	14,000.00
Rates	11,000.00
Wages and salaries	25,000.00
Light and heat	8,000.00
Insurance	6,000.00
Motor expenses	6,000.00
Bank charges	1,000.00
Bad debts	2,000.00
Interest on loans	5,000.00
Drawings	12,000.00
	490,000.00	490,000.00

Additional information as at 31 December:

1. Inventory at 31 December was $25,000

2. You are required to depreciate the following assets on a straight-line basis at the indicated rates

equipment 10%, fixtures and fittings, 5% motor vehicles 20%

3. Accrue for light and heat of $2,000

4. Insurance prepaid $1,500

5. A provision of $4,000 for bad debts to be created.

You are required to prepare an income statement for year ended 31 December and a statement of financial position at that date.