Refer to the pictures. Required:Prepare the Income Statement of PUN Company for the year to 31 December 2019 and the Statement of Financial Position as at that date in report format. The following is account information for PUN Company as of December 31, 2019.Sales$98,207Equipment$44,000Bank Loan (3 years)2,500Acc. Depreciation, Equipment14,000Capital27,203Accounts Receivable12,000Accounts Payable10,950Electricity1,500Other Expenses9,200Cash1,000Return Inwards900Discount Allowed500Return Outwards370Discount received470Stock10,000Withdrawal7,500Purchases50,100Rent and Rates17,000The following additional information is provided:1. Rent of $500 is prepaid.2. Electricity of $350 is accrued.3. Equipment is depreciated using the reducing balance method at a rate of 20% per annum.4. Mr. Pun, the owner took stock for his own use that cost $450. No entry was made in the books inrespect of this.5. The closing stock is $12,000.6. Bad debts of $150 are to be written off. Required:Prepare the Income Statement of PUN Company for the year to 31 December 2019 andthe Statement of Financial Position as at that date in report format.

Required financial statements are given below"

Answered: Prepare the Income Statement of PUN…

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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Refer to the pictures.

Required:

Prepare the Income Statement of PUN Company for the year to 31 December 2019 and

the Statement of Financial Position as at that date in report format.

The following is account information for PUN Company as of December 31, 2019.
Sales
$98,207
Equipment
$44,000
Bank Loan (3 years)
2,500
Acc. Depreciation, Equipment
14,000
Capital
27,203
Accounts Receivable
12,000
Accounts Payable
10,950
Electricity
1,500
Other Expenses
9,200
Cash
1,000
Return Inwards
900
Discount Allowed
500
Return Outwards
370
Discount received
470
Stock
10,000
Withdrawal
7,500
Purchases
50,100
Rent and Rates
17,000
The following additional information is provided:
1. Rent of $500 is prepaid.
2. Electricity of $350 is accrued.
3. Equipment is depreciated using the reducing balance method at a rate of 20% per annum.
4. Mr. Pun, the owner took stock for his own use that cost $450. No entry was made in the books in
respect of this.
5. The closing stock is $12,000.
6. Bad debts of $150 are to be written off.

Required:
Prepare the Income Statement of PUN Company for the year to 31 December 2019 and
the Statement of Financial Position as at that date in report format.

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.

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