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The following balances were extracted from the books of Kenricks Garage at 31 December 2020:

	Debit	Credit
	$	$
Purchases and sales	1,250,500	2,870,000
Capital		450,000
Inventory at January 1, 2020	235,000
Returns	42,200	22,500
Wages	340,500
Rent	80,000
Rates	15,500
Motor vehicle	800,000
Provision for depreciation motor vehicle		120,000
Equipment	950,000
Provision for depreciation equipment		95,000
Fixtures & fittings	150,000
Provision for depreciation fixtures & fittings		5,000
Drawings	8,000
Long-term loan		600,000
Trade receivables & payables	35,000	94,000
Provision for bad debts		1,500
Commission received		6,000
Carriage outwards	12,000
Carriage inwards	2,500
Rent received (from G. Lascelles)		30,000
Bank	347,300
Cash	25,500
	4,294,000	4,294,000

Additional information:

a) Inventory as at December 31, 2020 was $35,300

b) Depreciate Equipment at 10% and motor vehicle at 15% on their balances and fixtures & Fittings at 10% on the cost.

c) Wages was owed for $12,000.

d) Rates prepaid were $3,000.

e) Commission received was owed $4,000.

f) On August 1, 2020, Kenrick sublet a section of the premises to G. Lascelles at $15,000 per month.

g) The provision for bad debts is to be revised to 10 % of trade receivables.

Required:

1. Prepare the Income Statement for the year ended 31 December 2020 and,

2. Prepare a Statement of Financial Position as at 31 December 2020.

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