The following list of balances is from the ledger of Mr. Carty as at February 28, 2018. Carriage Outwards $4,562Drawings $18,440Carriage Inwards $11,830Discount Allowed $2,306Discount Received $1,750Purchases $135,680Return Inwards $5,624Rents, rates & insurance $25,973Heating & Lighting $11,010Postage, stationery & telephone $2,410Debtor $ 24,500Fixtures & Fittings- at cost $120,740Provision for depreciation on fixtures & fittings- as at Feb. 28, 2018, $63,020Depreciation $12,074Advertising $5,980Salaries & wages $38,521Bad debt $2,008Cash $534Return Outwards $13,407Provision for doubtful debt $512Bank $4,440Capital $83,887Sales $259,870Creditor $19,840Stock as at March 1, 2017, $15,654 You are required to: Prepare a trial balance from the information provided Using the following additional information:Stock at the close of business was valued at $17,750Insurances have been prepaid by $1,120Heating and lighting are accrued by $1,360The provision for doubtful debt is to be adjusted so that it is 3% of debtorsPrepaid rates $5,435 Prepare an Income Statement for Mr. Carty for the year ended Feb. 28, 2018 Prepare the statement of financial position as at Feb. 28, 2018 Explain the importance of the Income Statement and Statement of Financial position to Mr. Carty. From the information gathered in the Income Statement and Statement of Financial Position, provide Mr. Carty with an analysis of his business performance.

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Answered: gs $18,440 Carriage Inwards $11,830…

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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The following list of balances is from the ledger of Mr. Carty as at February 28, 2018.

Carriage Outwards $4,562

Drawings $18,440

Carriage Inwards $11,830

Discount Allowed $2,306

Discount Received $1,750

Purchases $135,680

Return Inwards $5,624

Rents, rates & insurance $25,973

Heating & Lighting $11,010

Postage, stationery & telephone $2,410

Debtor $ 24,500

Fixtures & Fittings- at cost $120,740

Provision for depreciation on fixtures & fittings- as at Feb. 28, 2018, $63,020

Depreciation $12,074

Advertising $5,980

Salaries & wages $38,521

Bad debt $2,008

Cash $534

Return Outwards $13,407

Provision for doubtful debt $512

Bank $4,440

Capital $83,887

Sales $259,870

Creditor $19,840

Stock as at March 1, 2017, $15,654

You are required to:

Prepare a trial balance from the information provided
Using the following additional information:
Stock at the close of business was valued at $17,750
Insurances have been prepaid by $1,120
Heating and lighting are accrued by $1,360
The provision for doubtful debt is to be adjusted so that it is 3% of debtors
Prepaid rates $5,435
Prepare an Income Statement for Mr. Carty for the year ended Feb. 28, 2018

Prepare the statement of financial position as at Feb. 28, 2018
Explain the importance of the Income Statement and Statement of Financial position to Mr. Carty.
From the information gathered in the Income Statement and Statement of Financial Position, provide Mr. Carty with an analysis of his business performance.

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