Adele has extracted the following balances from her books of account at 31 December 2014.
Additional information:
• Inventory at 31 December 2014 was valued at $43,450.
• Advertising costs of $580 relate to an advertising campaign to be launched in 2015.
• Property rental currently costs $3200 per month. Two months have been paid in advance.
• Light and heat worth $600 has been used but not yet invoiced.
• Depreciation for the year should be provided on the following basis.
• Adjust the provision for doubtful debts to 3 per cent of trade receivables at 31 December 2014.
Required
Prepare an income statement for the year ended 31 December 2014 and a statement of financial position at that date taking account of the additional information.
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