Question

The following is a Trial Balance from the ledger of Celine & Co. for the year ended 30 June 2018. Also, a stock take was done on the 30th June 2018, showing closing inventory of $128,000. The closing inventory has not yet been entered into the journals. Required: a) Prepare a properly formatted Income Statement. b) Prepare a properly formatted Balance Sheet. Trial Balance Workings Workings Dr Cr 1 920,000 780,000 380,000 248,000 52,000 280,000 4,400,000 152,000 3,560,000 672,000 144,000 Land and Buildings Plant & Machinery Accumulated Depreciation - Plant & Machinery Bank Overdraft Insurance Accounts Receivable Sales Inventory (Opening) Purchases Mortgage Electricity Accounts Payable GST Collected GST Paid Capital (opening) Advertising Office Expenses Bad Debts Drawings Salaries - Sales Staff Customs Duty Depreciation Closing Inventory (Adjustment) Totals 160,000 116,000 128,000 400,000 20,000 44,000 8,000 72,000 120,000 16,000 80,000 $6,376,000 $6,376,000

Answer 1

Income Statement
for Period ended June 30, 2018
	Amount $
Sales	4400000
Less:COGS:
Op. Inv.	152000
add:Purch	3560000
Less:Cl Inv.	128000
COGS	3584000
Gross Profit	816000
Less: Selling Expenses:
Advertising	20000
Bad debts	8000
Salaries - Sales staff	120000
Customs Duty	16000
GST paid	128000
Total Selling Exp.	292000
Income before Admin exp.	524000
Less:Admin Expenses:
Office exp.	44000
Depreciation	80000
Insurance	52000
Electricity	144000
Total Admin Exp.	320000
Income before taxes	204000
less:Taxes	0
Net Income	204000
Balance Sheet
on June 30, 2018
Assets:	Amount $
Acc Receivable	280000
Inventory	128000
Current assets	408000
Land & building	920000
Plant & Machinery	780000
Acc Dep - P&M	-380000
Total Assets	1728000
Liabilities & Capital:	Amount $
Bank Overdraft	248000
Acc Payable	160000
GST Collected	116000
Current Liabilities	524000
Mortgage	672000
Capital :
Opening	400000
Less:Drawings	-72000
Add:Net Income	204000
Closing	532000
Total Liab. & Capital	1728000