Alesha Harrison is a sole trader who operates a pastry shop in Iguana Lane. She rents a small section of the shop to Lia

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Alesha Harrison is a sole trader who operates a pastry shop in
Iguana Lane. She rents a small section of the shop to Liam Carr,
for $450 per month. Liam sells iced coffee and occupies the rented
space for nine (9) months of accounting year. The following trial
balance was as at December 31, 2021.
Particulars
DR ($)
CR($)
Furniture
70,000
Motor Vehicle
55,000
Purchases
51,100
Wages
5,000
Bad debts
2,000
Donations to charity
1,250
Provision for depreciation - Furniture
3,800
Provision for depreciation – Motor Vehicle
2,000
Capital
50,000
Loan
27,000
Bank
5,000
Rent received from Liam Carr
3,050
Discounts
800
900
Returns
700
1,200
Carriage inwards
600
Rent paid
7,000
Provision for bad debts
2,800
Accounts payable
31,300
Drawings
2,300
Stock at January 1, 2021
4,300
Cash
3,500
Accounts receivable
40,000
Sales
130,000
Insurance
3,500
252,050
252,050
Notes
a) Insurance owing was $500, wages
were prepaid $300
b) The provision for bad debt is to
be adjusted to 5% of accounts receivable
c) Stock at the yearend was valued
at $5,700; however it appears that an additional amount, which is
material, was omitted from the accounts of $1,400. The amount was
deemed should be accounted for in the financial statements.
d) Furniture is to be depreciated
at 5% per annum using the reducing balance method and motor vehicle
is to be depreciated at 10% based on the straight line method.
a) Prepare Alesha Harrison’s Statement of Profit or Loss
for the year ended December 31, 2021