The following list of Balances was extracted from the books of C. Radio, general merchant, at 31 December 2002. 6 500 1 000 10 000 30 800 100 Advertising Bad debts First National Bank Capital (balance at 1 January 2002) Cash Creditors Customs duty on purchase Debtors Discount Drawings 8 500 8 000 23 150 240 2 650 380 3 500 Fire and motor vehicle insurance Furniture and fittings at cost Accumulated depreciation on furniture and fittings at 1 January 2002 Freight on purchases 500 4 000 370 General expenses Motor vehicles at cost 7 500 Accumulated depreciation on vehicles at 1 January 2002 1 000 Motor vehicles expenses 1 860 93 000 Purchases 1 000 Provision for bad debts Railage inwards Railage outward Rent received 3 300 2 300 10 400 1 500 Returns inwards Sales 142 500 Salaries and wages 24 000 350 Stationery Stock at 1 January 2002 21 000 204 700 204 700 Adjustments: 1. A further amount of R150 is to be written off in respect of bad debts. 2. The provision for bad debts is to be made equal to 10% of the outstanding debtors. 3. Depreciation to be written off as follows: Furniture and fittings: 10% on cost. Motor vehicles : 20% on diminishing balance. 4. Stock that had cost R1000 was stolen from one of the firm's delivery vehicles and no entry was made to account for it. 5. Wages due but not paid at 31 December 2002 amounted to R200. 6. The rent received amounts to R800 per month. 7. Stock at 31 December 2002 was R21 500. Required (a) Show the income statement. (b) Show the balance sheet