Question

Required: a) Prepare a properly formatted Income Statement. b) Prepare a properly formatted Balance Sheet. Trial Balance Workings Dr Cr 460,000 390,000 190,000 124,000 42,000 140,000 2,200,000 72,000 1780,000 336,000 Land and Buildings Shop Fittings Acc Depn-Shop Fittings Bank Overdraft Office Furniture & Equipment Accounts Receivable Sales Inventory (Opening) Purchases ANZ Long-Term Loan Wages Accounts Payable GST Collected GST Paid Capital (opening) Insurance Office Expenses Bad Debts Drawings Customs Duty Depreciation 60,000 80,000 58,000 64,000 200,000 10,000 22,000 4,000 36,000 60,000 48,000 Totals $3,188,000 $3,188,000

Answer 1

Income Statement
Revenues:
Sales		2200000
Less: Cost of goods sold:
Opening Inventory	72000
Add: Purchases	1780000
Add: Custome Duty	60000
Less: Closing Stock	0	1912000
Gross Profit		288000
Expenses:
Wages	60000
Insurance	10000
Office Expenses	22000
Bad Debts	4000
Depreciation	48000	144000
Net Income		144000

Balance Sheet
Assets	Amount	Liabilities	Amount
Current Assets:		Current Liabilities:
		Accounts Payable	80000
Account Receivables	140000	GST Collected	58000
GSt Paid	64000	Bank OD	124000
Total Current Assets	204000	Total Current Liabilities	262000
Long Term Assets:		Long Term Liabilities:
Buildings	460000	ANZ Long term Loan	336000
Shop fittings	390000
Accum Dep.	-190000	Total Liabilites	598000
Office Furniture and Equipment	42000
		Capital:
		Capital (200000+144000)	344000
		Drawings	-36000
Total	906000	Total	906000