Additional Notes

1. Stock at year end was valued at $85,000

2. Wages is owing by $8,600

3. Insurance is prepaid by $2,300

4. During the year the owner took goods values at $10,000. This was not yet recorded

5. The rent received is prepaid by $5,000

6. Commission income is owing by $6,250

7. The provision for bad debts is to be adjusted to 10% of debtors

8. Depreciation charges are to be applied as follows

ASSET	RATE	METHOD
Land and Building	5%	Reducing Balance
Motor Vehicle	5%	Straight Line
Machinery and Equipment	5%	Reducing Balance

Required : Prepare the following

1. The Statement of Profit and Loss for the year ending December 31, 2020 .

2. The Statement of Financial Position at at December 31, 2020.

2a. The following trial balance was obtained from the books of Mitch Marsh as at December 31. 2020