ConEct is a retailer of mobile phones. All of its revenue comes from a percentage of the sales value of Very Berry mobile phones which it delivers to customers' homes and workplaces. At the end of the financial year, 31 January 2012, the following balances were presented. NOTE: The business calculates annual depreciation expense at a rate of 20% on the reducing balance basis.Capital88000Delivery van at cost60000Provision for Depreciation: Delivery Val12000Bank121400Sales Commission Received115000Sales Commission Outstanding14100Rent13300Rent Owing3000Insurance7100Prepaid Insurance1800Delivery Expense11500Salesmen’s wages467005-year bank loan50000Loan Interest5000 Using the information provided, prepare for ConEct:Prepare an Income Statement for the year ended 31 January 2012Prepare a classified Balance Sheet as at 31 January 2012

The income statement is the one prepared by the company to depict the financial performance of the…

Answered: onEct is a retailer of mobile phones.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

ConEct is a retailer of mobile phones. All of its revenue comes from a percentage of the sales value of Very Berry mobile phones which it delivers to customers' homes and workplaces. At the end of the financial year, 31 January 2012, the following balances were presented.

NOTE: The business calculates annual depreciation expense at a rate of 20% on the reducing balance basis.

Capital	88000
Delivery van at cost	60000
Provision for Depreciation: Delivery Val	12000
Bank	121400
Sales Commission Received	115000
Sales Commission Outstanding	14100
Rent	13300
Rent Owing	3000
Insurance	7100
Prepaid Insurance	1800
Delivery Expense	11500
Salesmen’s wages	46700
5-year bank loan	50000
Loan Interest	5000

Using the information provided, prepare for ConEct:

Prepare an Income Statement for the year ended 31 January 2012

Prepare a classified Balance Sheet as at 31 January 2012

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions