The trial balance of Advanced Retailer as at 31 December 20X1 is as follows: Account DR ($) CR ($) Sales 75,950 Cost of goods sold 5,690 Advertising expense 2,000 Delivery expense 1,590 Discount expense 680 Discount revenue 600 Insurance expense 300 Interest expense 130 Office salaries 20,900 Office rent expense 9,200 Sales salaries 20,670 Telecommunication expense 700 Utilities expense 680 Accounts receivable 6,480 Accounts payable 8,000 Capital, Arthur 60,000 Cash at bank 1,050 Drawings, Arthur 2,000 Inventories 34,640 Furniture and fittings 9,500 Motor vehicle 10,000 Office equipment 20,440 145,600 145,600 Required: Using the templates provided on the next page, (a) Prepare the Trading, Profit and Loss Statement for the year ended 31 December 20X1. (b) Prepare the Balance Sheet as at 31 December 20X1. a) Advanced Retailer Trading, Profit and Loss Statement for year ended 30 June 20X1 $ $ $ Sales Less: Cost of goods sold Gross Profit Add: Other revenue Less: Operating expenses Selling and distribution expenses General and administrative expenses Financial expenses Net Profit a) Advanced Retailer Balance Sheet as at 31 December 20X1 $ $ $ Owner’s Equity Represented by: Current assets Less: Current liabilities Working Capital Add: Non-current assets Property, plant and equipment Net Assets

The trial balance of Advanced Retailer as at 31 December 20X1 is as follows: Account DR ($) CR ($) Sales 75,950 Cost of goods sold 5,690 Advertising expense 2,000 Delivery expense 1,590 Discount expense 680 Discount revenue 600 Insurance expense 300 Interest expense 130 Office salaries 20,900 Office rent expense 9,200 Sales salaries 20,670 Telecommunication expense 700 Utilities expense 680 Accounts receivable 6,480 Accounts payable 8,000 Capital, Arthur 60,000 Cash at bank 1,050 Drawings, Arthur 2,000 Inventories 34,640 Furniture and fittings 9,500 Motor vehicle 10,000 Office equipment 20,440 145,600 145,600 Required: Using the templates provided on the next page, (a) Prepare the Trading, Profit and Loss Statement for the year ended 31 December 20X1. (b) Prepare the Balance Sheet as at 31 December 20X1. a) Advanced Retailer Trading, Profit and Loss Statement for year ended 30 June 20X1 $ $ $ Sales Less: Cost of goods sold Gross Profit Add: Other revenue Less: Operating expenses Selling and distribution expenses General and administrative expenses Financial expenses Net Profit a) Advanced Retailer Balance Sheet as at 31 December 20X1 $ $ $ Owner’s Equity Represented by: Current assets Less: Current liabilities Working Capital Add: Non-current assets Property, plant and equipment Net Assets

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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a) Advanced Retailer

Balance Sheet as at 31 December 20X1

	$	$	$
Owner’s Equity





Represented by:
Current assets



Less: Current liabilities




Working Capital

Add: Non-current assets
Property, plant and equipment



Net Assets

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	$	$	$
Sales
Less: Cost of goods sold

Gross Profit

Add: Other revenue


Less: Operating expenses
Selling and distribution expenses





General and administrative expenses








Financial expenses


Net Profit

Account	DR ($)	CR ($)
Sales		75,950
Cost of goods sold	5,690
Advertising expense	2,000
Delivery expense	1,590
Discount expense	680
Discount revenue		600
Insurance expense	300
Interest expense	130
Office salaries	20,900
Office rent expense	9,200
Sales salaries	20,670
Telecommunication expense	700
Utilities expense	680
Accounts receivable	6,480
Accounts payable		8,000
Capital, Arthur		60,000
Cash at bank		1,050
Drawings, Arthur	2,000
Inventories	34,640
Furniture and fittings	9,500
Motor vehicle	10,000
Office equipment	20,440
	145,600	145,600