5 Franco is in business as a sole trader. The following balances were extracted from his books on 31 January 2014. $ Land and buildings (cost) Fixtures and fittings (cost) Computer equipment (cost) 8% Bank loan (repayable 30 April 2020) Bank 150 000 30 000 70 000 100 000 17 430 Dr Trade receivables 45 000 Trade payables 37 650 Revenue 362 500 Purchases 172 400 7 200 8 800 Returns inwards Returns outwards Inventory at 1 February 2013 Distribution expenses 17 970 16 300 5 900 7 850 Insurance Light and heat Wages and salaries Marketing expenses General expenses Commission received 69 500 31 000 9 200 11 400 Drawings Capital 20 000 149 400 Additional information at 31 January 2014 1 Inventory was valued at $15 600. 2 Wages and salaries includes $15 000 drawings by Franco. 3 Marketing expenses, $6750, were prepaid. 4 No interest had been paid on the bank loan. 5 Computer equipment costing $8000 was purchased by cheque on 25 January 2014. No entries had been made in the books. Required: a. Income Statement b. Statement of Financial Position

5 Franco is in business as a sole trader. The following balances were extracted from his books on 31 January 2014. $ Land and buildings (cost) Fixtures and fittings (cost) Computer equipment (cost) 8% Bank loan (repayable 30 April 2020) Bank 150 000 30 000 70 000 100 000 17 430 Dr Trade receivables 45 000 Trade payables 37 650 Revenue 362 500 Purchases 172 400 7 200 8 800 Returns inwards Returns outwards Inventory at 1 February 2013 Distribution expenses 17 970 16 300 5 900 7 850 Insurance Light and heat Wages and salaries Marketing expenses General expenses Commission received 69 500 31 000 9 200 11 400 Drawings Capital 20 000 149 400 Additional information at 31 January 2014 1 Inventory was valued at $15 600. 2 Wages and salaries includes $15 000 drawings by Franco. 3 Marketing expenses, $6750, were prepaid. 4 No interest had been paid on the bank loan. 5 Computer equipment costing $8000 was purchased by cheque on 25 January 2014. No entries had been made in the books. Required: a. Income Statement b. Statement of Financial Position

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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