TT and Co. is a new business that started trading on 1 January 2015. The following is a summary of

transactions that occurred during the first year of trading:

• The owners introduced 50,000 of equity, which was paid into a bank account opened in thename of the business.
• Premises were rented from 1 January 2015 at an annual rental of 20,000. During the year, rentof 25,000 was paid to the owner of the premises.
• Rates (a tax on business premises to be treated as an expense) were paid during the year as follows:
• For the period 1 January 2015 to 31 March 2015 500
• For the period 1 April 2015 to 31 March 2016 1,200
• A delivery van was bought on 1 January 2015 for 12,000. This is expected to be used in thebusiness for four years and then to be sold for 2,000.
• Wages totalling 33,500 were paid during the year. At the end of the year, the business owed630 of wages for the last week of the year.
• Electricity bills for the first three quarters of the year were paid totalling 1,650. After 31December 2015, but before the financial statements had been finalised for the year, the bill for the last quarter arrived showing a charge of 620.
• Inventories totalling 143,000 were bought on credit.
• Inventories totalling 12,000 were bought for cash.
• Sales revenue on credit totalled 152,000 (cost of sales 74,000).
• Cash sales revenue totalled 35,000 (cost of sales 16,000).
• Receipts from trade receivables totalled 132,000.
• Payments of trade payables totalled 121,000.
• Van running expenses paid totalled 9,400.
• At the end of the year it was clear that a credit customer who owed 400 would not be able to pay any part of the debt.

All of the other trade receivables were expected to be settled in full. The business uses the straight-line method for depreciating non-current assets.

Required: Prepare statement of financial positionas at 31 December 2015 and anincome statementfor the year to that date.