Bik is a sole trader. The following balances were extracted from her books on 28 February 2017. Revenue $410000 Purchases $216800 Returns inwards $15600 Returns outwards $9550 Administration expenses $71000 Insurance $6800 Rent receivable $15000 Electricity $10200 Staff salaries $59700 Advertising $27500 General expenses $14600 Non-current assets Leasehold buildings (cost) $90000 Shop fixtures (cost) $24000 Computer equipment (cost) $60000 Provision for depreciation Leasehold buildings $13500 Shop fixtures $14000 Computer equipment $42000 Disposal account $6000 Debit 8% Bank loan (repayable 31 December 2017) $60000 Inventory at 1 March 2016 $24050 Bank $20500 Debit Trade receivables $34500 Trade payables $25600 Provision for doubtful debts $1100 Capital $100000 Drawings $9500 Additional information at 28 February 2017 1 Inventory was valued at $20 700. 2 Staff salaries include $8000 paid to Bik. 3 Rent receivable, $3000, was owing. 4 General expenses, $5000, were owing. 5 No interest had been paid on the bank loan. 6 During the year new shop fixtures costing $8000 were purchased. Payment was made by cheque. No entries had been made in the books. 7 Depreciation is to be charged on all non-current assets owned at the end of each year. (i) The buildings are held on a lease of 20 years. An appropriate amount is charged for depreciation of the leasehold. (ii) Shop fixtures at the rate of 15% per annum using the straight line method. (iii) Computer equipment at the rate of 30% per annum using the diminishing (reducing) balance method. 8 Trade receivables, $2500, were considered irrecoverable and should be written off. The provision for doubtful debts of 5% is to be maintained. REQUIRED

1. (a)Prepare the income statement for the year ended 28 February 2017.[23]
2. (b)Prepare the statement of financial position at 28 February 2017.[17]