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Peter Wong has a retail business, but he does not keep double-entry accounts. However, he extracted the following information as at the year ended 31 December: Investigation reveals the following facts: (i) A deposit of $1,830 had been sent to the bank on 31 December 2022 but had not yet been credited by the bank. (ii) A debit advice of $80 for bank charges had not been received by Peter Wong by 31 December 2022. (iii) Peter Wong owns two machines. One was bought in 2019 and another one in 2022 . The machinery is to be depreciated at 20% on the reducing balance method. (iv) The office equipment was purchased in 2019. It is estimated to have a residual value of $150 and a five-year useful life. (v) It is the company's policy to make a 5% allowance for doubtful debts on trade receivables. He estimated that 10% of the remaining trade receivables accept a cash discount of 3%. (vi) The investments were bought in 2020 . They had a market value of $9,800 on 31 December 2022 respectively. The diminution of value of the investment is considered as permanent. (vii)As 31 December 2022, inventory included an obsolete item which cost $26,000 and is estimated to have a net realizable value of $15,000. You are required to: (a) Prepare a statement of affairs to show the capital as at 31 December 2021; and (b) Prepare the balance sheet as at 31 December 2022, in vertical form, indicating the net profit or loss for this year

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