Gwyn Tring, trading as Clickety Clocks, imports and resells clocks. He pays for the costs of delivering the clocks from his supplier in Switzerland to his shop in Wales. He resells the clocks to other traders throughout the country, paying the costs of carriage for the consignments from his business premises to his customers. On 1 July 20X5, he had clocks in inventory valued at $17,000. During the year to 30 June 20X6 he purchased more clocks at a cost of $75,000. Carriage inwards amounted to $2,000. Sales for the year were $162,100. Other expenses of the business amounted to $56,000 excluding carriage outwards which cost $2,500. Gwyn Tring took drawings of $20,000 from the business during the course of the year. The value of the goods in inventory at the year end was $15,400. Required Prepare the income statement of Clickety Clocks for the year ended 30 June 20X6.
Gwyn Tring, trading as Clickety Clocks, imports and resells clocks. He pays for the costs of delivering the
clocks from his supplier in Switzerland to his shop in Wales.
He resells the clocks to other traders throughout the country, paying the costs of carriage for the
consignments from his business premises to his customers.
On 1 July 20X5, he had clocks in inventory valued at $17,000. During the year to 30 June 20X6 he
purchased more clocks at a cost of $75,000. Carriage inwards amounted to $2,000. Sales for the year
were $162,100. Other expenses of the business amounted to $56,000 excluding carriage outwards which
cost $2,500. Gwyn Tring took drawings of $20,000 from the business during the course of the year. The
value of the goods in inventory at the year end was $15,400.
Required
Prepare the income statement of Clickety Clocks for the year ended 30 June 20X6.
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