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Prepare Income Statement

Prepare Income Statement

FINANCIAL ACCOUNTING
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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Q4: Prepare Income Statement and Balance Sheet from the following Trial Balance of Abc Company Trial Balance on 30 September 2020 Debit Credit Owners capital 125,000 Drawings - owners 25,000 160,000 30,000 25,000 5,000 Purchases Wages Opening inventories Travelling expenses Plant and machinery 105,000 45,000 Furniture Cash and cash equivalents 59,000 |Accounts receivable 50,000 Accounts payable Bank loan Rent expenses 33,000 50,000 6,000 Marketable securities 58,000 Purchase returns 12,000 Sales returns 5,000 Miscellaneous expenses 4,000 Stationery expenses Salary expenses Sales 8,000 25,000 365,000| Service revenue 17,500 Interest 7,500 Total 610,000 610,000 |1. Closing inventory was RO. 30,000 2. Salary expenses of RO. 1,500 were outstanding. 3. Cash collected for the services to be performed in future periods is RO. 5500| 4. Depreciation rate for Plant & Machinery is 25% per annum and depreciation expenses for Furniture is 10% per annum.
Transcribed Image Text:Q4: Prepare Income Statement and Balance Sheet from the following Trial Balance of Abc Company Trial Balance on 30 September 2020 Debit Credit Owners capital 125,000 Drawings - owners 25,000 160,000 30,000 25,000 5,000 Purchases Wages Opening inventories Travelling expenses Plant and machinery 105,000 45,000 Furniture Cash and cash equivalents 59,000 |Accounts receivable 50,000 Accounts payable Bank loan Rent expenses 33,000 50,000 6,000 Marketable securities 58,000 Purchase returns 12,000 Sales returns 5,000 Miscellaneous expenses 4,000 Stationery expenses Salary expenses Sales 8,000 25,000 365,000| Service revenue 17,500 Interest 7,500 Total 610,000 610,000 |1. Closing inventory was RO. 30,000 2. Salary expenses of RO. 1,500 were outstanding. 3. Cash collected for the services to be performed in future periods is RO. 5500| 4. Depreciation rate for Plant & Machinery is 25% per annum and depreciation expenses for Furniture is 10% per annum.
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