Can you prepare and present a) statement of Financial performance( also knows as profit and loss) for the financial year ended 31 December 2020b) The statement of financial position.( also knows as balance sheet) as at 31 December 2020 During 2020, the following transactions took place:1. The owners introduced new capital in the form of cash £10,000.2. Water bill for the year £2,000 and the owner paid £1,800 in cash at the end of thefinancial year.3. Inventories total £60,000 was purchased on credit.4. Inventories total £20,000 was purchased for cash.5. Credit sales revenue during the year total £75,000 (cost £35,000).6. Cash sales revenue during the year total £100,000 (cost £50,000).7. Building continued to be rented at annual rental of £10,000. During the year, ownerpaid in cash £10,500 plus £1,000 towards the next year.8. Rates on the premises were paid in cash during the year as follows: for the period 1April 2020 to 31 March 2021 was £1,200.9. Receipts from trade receivables total £52,000.10.A new delivery van was bought for cash during the year for £16,000 and the usefullife of the asset is 7 years. The expected residual value of the asset is £2,000.11.Payments to trade payables total £40,000.12. During the year total wages £12,000 was paid in cash however at the end of the year,the business found out £2,000 of wages for the last week of the year was not paid.13. Bank Loan £10,200 full amount paid back during the year.14. The owner brought in a machine for £5,000 to the business and the useful life of theasset is 4 years. The expected residual value of the assest is £1,000.15. The short-term loan £5,000 received were deposited in the business bank account.16.The corporation tax bill for 2020 is £10,000 half of which was paid in cash during theyear and the balance was carried forward towards the next financial year.The business uses the straight-line method for depreciating its non-current assets. ASSETSNon-current assetsProperty, plant and equipmentLand3.130,000Equipment at costDepreciation10,0009.000139,000(1,000)Current assetsInventories6,0003,000200ReceivablesPrepaid expenses: WaterRates200Cash29.400168.40020.000Total assetsEquity and LiabilitiesEquityOriginal Capital (Owner's Capital)Retained profit120,00025.400 145,400LiabilitiesLong-term liabilitiesMortgage10,200Short-term liabilitiesTrade payablesAccrued expenses: RentTax payableTotal Equity and Liabilities2,5005009.80012.800168.400

Answered: statement of financial positio

Business

Accounting

statement of financial positio

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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