The following list of account balances was extracted from the ledger of Kevin Webster, a sole trader, as at 31 May 20X1, the end of his financial year. KEVIN WEBSTER TRIAL BALANCE AS AT 31 MAY 20X1 Dr Cr $ $ Property, at cost Equipment, at cost Accumulated depreciation (as at 1 June 20X0) - on property - on equipment 120,000 80,000 20,000 38,000 Purchases 250,000 Sales 402,200 Inventory, as at 1 June 20X0 Returns out (purchase returns) Wages and salaries Selling expenses Loan interest Other operating expenses Trade accounts payable 50,000 15,000 58,800 22,600 5,100 17,700 36,000 38,000 300 Trade accounts receivable Cash in hand Bank 1,300 24,000 Drawings 17% long-term loan Capital, as at 1 June 20X0 30,000 126,600 667,800 667,800 The following additional information as at 31 May 20X1 is available. (a) Inventory as at the close of business has been valued at cost at $42,000. (b) Depreciation for the year ended 31 May 20X1 has still to be charged as follows: Property: 1.5% per annum using the straight line method Equipment: 25% per annum using the reducing balance method Required Prepare Kevin Webster's income statement for the year ended 31 May 20X1 and his statement of financial position as at that date.