The following is the statement of financial position of TT and Co at the end of its

Question:

The following is the statement of financial position of TT and Co at the end of its first year of trading: image text in transcribed

During 2017, the following transactions took place:
1 The owners withdrew £20,000 of equity as cash.
2 Premises continued to be rented at an annual rental of £20,000. During the year, rent of £15,000 was paid to the owner of the premises.
3 Rates on the premises £1,300 were paid for the period 1 April 2017 to 31 March 2018.
4 A second delivery van was bought on 1 January 2017 for £13,000. This is expected to be used in the business for four years and then to be sold for £3,000.
5 Wages totalling £36,700 were paid during the year. At the end of the year, the business owed £860 of wages for the last week of the year.
6 Electricity bills for the first three quarters of the year and £620 for the last quarter of the previous year were paid totalling £1,820. After 31 December 2017, but before the financial statements had been finalised for the year, the bill for the last quarter arrived showing a charge of £690.
7 Inventories totalling £67,000 were bought on credit.
8 Inventories totalling £8,000 were bought for cash.
9 Sales revenue on credit totalled £179,000 (cost £89,000).
10 Cash sales revenue totalled £54,000 (cost £25,000).
11 Receipts from trade receivables totalled £178,000.
12 Payments to trade payables totalled £71,000.
13 Van running expenses paid totalled £16,200.
The business uses the straight-line method for depreciating non-current assets.
Required:
Prepare a statement of financial position as at 31 December 2017 and an income statement for the year to that date.