The following is the Trial Balance for J. Bright as at September 30, 2018.

Dr ($) Cr ($)

Loan 140,000

Capital 325,955

Drawings 8,420

Cash at bank 103,215

Cash at hand 22, 195

Accounts Receivables 72,300

Stock October 1, 2017 23,910

Machinery 156,000

Furniture & Fittings 78,000

Provision for Depreciation: Machinery 11,900

Provision for Depreciation: Furniture & w 10,750

Sales 198,900

Purchases 92,100

Accounts Payable 34,370

Return Inwards 3, 550

Carriage Inwards 4, 215

Return Outwards 5, 308

Carriage Outwards 6,310

Commission Received 10,000

Provision for Bad Debt 2,169

Machine Repairs 36,045

Rent 42,970

Electricity 15,405

Salary 62,810

Insurance 9, 500

Bad Debt 2,407 ________ 739,352 739,352

Notes:

(a) Prepaid expenses: insurance, $105

(b) Expenses owing: rent, $300; Electricity $85

(c) Commission received include $2,000 for the financial year end 2019.

(d) The Provision for Bad Debt is to be adjusted to 2% of debtors.

(e) Depreciate motor Machinery at 20% reducing balance; Furniture & Fittings at 10% on cost.

(f) Stock as at 30 September 2018 is $27,475.

Prepare an Income Statement for the year to 30 September 2018 and a Balance Sheet as at that date.