Question

Balance Sheet & Income Statement Coast Ltd., which has just started trading on 1 January 2019. has the following account balances prior to the recording of the final month of the year: Account Balances as at 30 November 2019 Account $ Cash $5 300 Accounts receivable $6 400 Stock of Supplies $11 600 Property, Plant & Equipment -cost $36 000 Accounts payable $3 000 Interest payable S 100 Bank Loan $12 000 Contributed capital (40 000 shares) $20 000 Sales revenue $70 000 Operating expenses (excluding depreciation) S10 000 Other operating income $3 300 Cost of goods sold $38 000 Interest expense $1 100 Note: Operating expenses include rent and wages but exclude depreciation. The interest rate of the bank loan is 10% per annum. In December 2019, the following transactions took place: 1. Credit purchases of goods $10,000 2. Cash sales $13,000 (cost of goods sold $8,000) 3. Credit sales $8,000 (cost of goods sold $6,000) 4. Paid wages for December $2,500 5. Received $9,000 from debtors. 6. Paid interest of $500. 7. At the end of December, sold off an equipment that has costed $3,000 at the price of $1,500. The yearly depreciation expense of this equipment was $1,000. Additional information as below: 1. Annual rental expense is $6000. As at 31 December 2019, the rental expense for the last month is still pending payment. 2. Annual depreciation expense for the property, plant & equipment before the disposal of the equipment at transaction 7 was $9,000. Required: 1. Record the Account balances prior to adjustments in the workbook. Then, calculate and record the Adjustments in the workbook, total and balance the workbook. Indicate the transaction and additional information number accordingly in the workbook. [3 marks] 2. Prepare a properly formatted Balance Sheet as at 31 December 2019 and Income Statement for the year ended 31 December 2019. [2 marks]
Please show in excel like above, thanks!

Answer 1

Assets Particulars Cash Accounts receivables Stock P.P.E Intrerest paid in advance Balance sheet Revenue-Expences Amount Particulars Liabilities $ Amount Amount Particulars Income $ $ 24300 Capital 20000 Sales revenue 91000 5400 Income Over Exp 17100 Other Operating Income 3300 7600 Bank Loan 12000 94300 25000 Accounts payables 13000 Expenditures 300 Rent Payable 500 Cost of goods Sold 48000 62600 62600 Operating Exp 10000 Interest Exp 12001 Wages 2500 rent 6000 Depreciation 9000 Loss on sale of asset 500 77200 Income Over Exp 17100