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The following balances were extracted from the books of Jon Stayinside as at December 31, 2018. He is a sole trader who opened his wholesale store in Albany on January 1, 2015. His monthly rental is $18,000. This expense will remain the same for 8 years. Jon Stayinside rented Getthevax Johnson a very small section of the store for $2,000 per month.

PARTICULARS	DR	CR
Sales		3,017,700
Capital		450,000
Bad debts	5,000
Stock at January 1, 2018	235,000
Purchases	1,910,500
Returns	42,200	22,500
Wages	440,500
Rent Payable	180,000
Rates	85,500
Motor Vehicle	800,000
Provision for Depreciation - Motor Vehicle		120,000
Drawings	26,000
Loan		900,000
Equipment	950,000
Provision for Depreciation - Equipment		95,000
Debtors	35,000
Fixtures & Fittings	150,000
Provision for Depreciation Fixtures & Fittings		5,000
Provision for bad debts		1,500
Commission Received		12,000
Discounts	7,500	4,500
Carriage Inwards	2,500
Rent Received (from Getthevax Johnson)		30,000
Creditors		97,000
Bank		140,000
Cash	25,500
	4,895,200	4,895,200

Year end notes:

a) Depreciate Equipment at 10% on reducing balance, the motor vehicles at 10% on the straight line basis, fixtures & Fittings 10% reducing balance basis

b) Rates are owing $35,000, Wages are prepaid $8,000 and Commission Received is owing $3,000

c) Stock at December 31, 2018 $42,300, however it appears that an additional amount, $10,700 was found in a store room. The amount was deemed material and should be accounted for.

d) On November 1, 2018, Jon took goods amounting to $5,000 from the warehouse and continued to do so at the beginning of every month up to March 2019.

e) The Provision for bad debts is to be revised to 15 % of debtors

Required:

1. Prepare the Statement of Profit or Loss for Jon Stayinside with appropriate headings. (30 marks)

2. Prepare a Statement of Financial Position for Jon Stayinside, with appropriate headings. (20 marks)

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