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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

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

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

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