The following information is relevant:

1. Closing inventory at 31 December 2022 is 1,170,000.

2. Jade Ltd depreciates non-current assets as follows: plant and equipment at 10% per annum on a straight-line basis per annum motor vans at 20% per annum on a reducing balance basis per annum

3. There are no non-current assets that have a residual value. No depreciation for the year ended 31 December 2022 has been entered into the accounting records.

4. No heating and lighting bills for the month of December 2022 have been recorded in the accounting records. The heating and lighting invoice for 1 December 2022 to 28 February 2023 is expected to be 10,800.

5. On 1 November 2022 Wade Ltd had paid 18,000 in rent for the three month period from 1 November 2018 to 31 January 2023.

6. At 31 December 2022, Wade Ltd decided to write off a trade receivable of 21,900 and to make an allowance for irrecoverable receivables of 8 per cent of the outstanding receivables at that date. No entries have been made in the nominal ledger accounts.

7. Wade Ltd allocates expenses as follows: Depreciation on motor vans is allocated to distribution costs. Depreciation on plant and equipment is allocated to administrative expenses. Heating and lighting and salary expenses are allocated 25 per cent to distribution costs and 75 per cent to administrative expenses. All other expenses are included in administrative expenses.

8. A full years debenture interest is to be accrued.

9. For the financial year ended 31 December 2022, corporation tax is estimated to be 98,313 and the audit fee is estimated to be 18,000.

Required: Prepare an income statement for the period ended 31 December 2022 and a balance sheet as at 31 December 2022 for Wade Ltd.

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