(b) The following is a balance sheet of Russell Co.at 31 Dec.20x1
Russell Co.
Balance sheet as at 31 Dec.20x1
$ $
Current assets
Cash at bank 12,000
Trade debtors 18,000
Inventory 23,000
53,000
Non-current assets
Motor vehicles 19,000
Machinery 30,000
Freehold premises 110,000
159,000
212,000
Current liabilities
Trade creditors 37,000
Non-current liabilities
Loan 50,000
Capital
Opening balance 50,000
Add Revaluation gain 65,000
Add Profit 14,000
129,000
Less Drawings 4,000
125,000
212,000
During 20x1,the following transactions took place
 Inventory totaling $100,000 was bought on credit.
 The owner withdraw capital in the form of cas$50,000 for own use.
 Trade debtors totaling $80,000 was received.
 A motor vehicle was bought for $220,000 cash,the business expected to Use the vehicle for 5 years and the residual value is $20,000.The business uses a straight-line method to depreciate its assets.
 Inventory was sold on credit totaled $480,000(cost $210,000)
 Wages totaling $110,000 were paid during the year.At the end of the year,the business owes $10,000 of wages for the last month of the year.
 Cash sales totaled $150,000(cost $70,000)
 An annual rental of $20,000 was paid during the year.
 At the end of the year,depreciation expense of machinery and equipment Amounted to $75,000.
# Electricity bills totaling $10,000 were paid during the year.
Required:
Prepare a balance sheet as at 31 Dec.20x1.(25 marks)