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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.

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.

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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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.
Transcribed Image Text: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.
Transcribed Image Text: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.
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