The following trial balance was extracted from the books of Big Bamboo Limited on December 31, 2020

Big Bamboo Ltd
Trial Balance as at January 1, 2020
Motor vehicle at cost	10,600
Provision for depreciation on Motor Vehicle		2,120
Building at cost	90,000
Provision for depreciation on Buildings		1,800
Stock at January 1, 2020	53,000
Carriage inwards	500
Debtors	50,130
Returns Inwards	6,000
Returns Outwards		5,560
Bad debt provision		1,100
Cash	3,200
Creditors		30,350
Bank overdraft		15,500
Sales		600,000
Purchases	440,000
Wages	93,200
Insurance	54,100
Discount received		8,300
Drawings	14,000
Capital		150,000
	814,730	814,730

Additional Information:

1. Stock at December 31, 2020 $80,000

2. Payment of $10,100 for insurance relates to the first quarter of 2021.

3. Wages owing $4,800

4. Provision for bad debt is to be increased to $1,500

5. Depreciation on fixed assets:

- Motor vehicles 10% on cost

- Buildings 15 % on the reducing balance method

Required:

Prepare for Big Bamboo Limited:

(a) An income statement for the year ended December 31, 2020 (25 marks)

(b) A statement of financial position as at December 31, 2020 (20 marks)