prepare income statement and balance sheet..
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
The
Trial Balance |
||
Details |
Debit $ |
Credit $ |
Cash at Bank |
10,700 |
|
|
52,000 |
|
Inventory |
20,000 |
|
Equipment |
45,000 |
|
|
|
10,000 |
Vehicles |
50,000 |
|
Accumulated depreciation motor vehicles |
|
6,250 |
Land |
27,500 |
|
Accounts payable |
|
25,000 |
Loan |
|
85,000 |
Capital |
|
181,430 |
Sales revenue |
|
120,000 |
Interest revenue |
|
2,000 |
Cost of goods sold |
86,250 |
|
Salaries expense |
30,000 |
|
Rates expense |
1,500 |
|
Stationery expense |
800 |
|
Advertising expense |
1,900 |
|
Interest expense |
300 |
|
Motor Vehicle expense |
780 |
|
Repairs Expense |
2,500 |
|
Insurance Expense |
450 |
|
Total |
329,680 |
329,680 |
additional information:
- Depreciation of equipment 10% using the straight-line method
- Depreciation of vehicles 12.5% using the diminishing balance method
- Rates paid in advance $600
- Salaries owing $3,500
- Interest revenue earned but not received $1,300
- Create an allowance for doubtful debts equal to 5% of accounts receivable.
- Physical stocktake determined inventory at end 30 June 2017 was $18,800
prepare income statement and
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