Tricia owns a retail store. Her business's financial year end is 31^st December. The following trial balance was extracted from the business's books of account on 31^st December 2018.

Trial balance at 31 December 2018

Dr

Cr

$

$

Accounts payable

11,850

Accounts Receivable

27,000

Bad Debts

850

Capital

61,210

Cash at bank

3,890

Drawings

31,300

Equipment:

Cost

Provision for depreciation at 1 January 2018

35,000

14,000

Gross Profit

151,270

Inventory at 31 December 2018

29,480

Operating expenses

57,610

Rent

25,400

Vehicles:

Cost

Provision for depreciation at 1 January 2018

45,000

16,200

255,530

255,530

Additional information at 31 December 2018:

i.Rent, $1320, prepaid

ii.Operating expenses, $2,080, due but unpaid

iii.Tricia decided to make a provision for doubtful debts of 5% of the accounts receivable at the year end.

iv.Depreciation charged on non-current assets are as follows:

Equipment is depreciated by 20% per annum using the straight-line method

Vehicles are depreciated by 20% per annum using the reducing balance method.

Prepare end of year financial statements.