The following information was prepared for Xi Services as at 30 June 2014.

\begin{array}{lr}&\text { Assets Expenses }&\text { Liabilities Owner's }\\&&\text { Equity Income }\\&\$&\$\\\text { Bank } & 10,000 \\\text { Prepaid insurance } & 4,000 \\\text { Accounts payable } &&15,000\\\text { Secretarial expenses }&35,000\\\text { Mortgage loan payable } 1 \text { Aug } 2017&&210,000\\\text { Salaries expense } & 55,000 \\\text { Land and buildings } & 420,000\\\text { Capital Xi } 1 \text { July } 2013&&20,000\\\text { Accounts receivable } & 52,000 \\\text { Income } &&217,000 \\\text { Equipment } & 90,000\\text { Accumulated depreciation equipment }&&24,000\\&\$666,000&\$666,000\end{array}

Additional information available at 30 June 2014:
1.Interest expense outstanding is $4,500.
2.An allowance for doubtful debts is to be created for $1,500.
3.Depreciation of equipment is at the rate of 15% p.a.using the reducing-balance method.
4.$2,500 of the prepaid insurance has been used-up during the year
REQUIRED:
Incorporating all the above information,prepare:
a)an Income Statement for the year ended 30 June 2014.
b)a statement of financial position as at 30 June 2014.

On 31 December 2013,a New Motor Vehicle with a Useful

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