Reference no: EM133092837
Question - Jenna Knight, a sole trader, has asked you to assist her in preparing her financial statements. She operates a small wholesale business in Kingston and has presented you with the following Trial Balance as at December 31, 2020:
|
|
Dr
|
Cr
|
|
Capital
|
-
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625,000
|
|
Loan
|
-
|
450,000
|
|
Land
|
571,925
|
-
|
|
Fixture & Fittings
|
220,000
|
-
|
|
Accumulated provision for depreciation: Fixture & Fittings
|
-
|
60,000
|
|
Machinery & Equipment
|
300,000
|
-
|
|
Accumulated provision for depreciation: Machinery
|
-
|
75,000
|
|
Motor Vehicle
|
204,000
|
-
|
|
Accumulated provision for depreciation: Motor Vehicle
|
-
|
52,000
|
|
Debtors
|
62,500
|
-
|
|
Carriage Inwards
|
6,250
|
-
|
|
Return Inwards
|
13,500
|
-
|
|
Return outwards
|
-
|
11,500
|
|
Carriage outwards
|
5,425
|
-
|
|
Creditors
|
-
|
66,000
|
|
Sales
|
-
|
625,000
|
|
Purchases
|
411,900
|
-
|
|
Commission Received
|
-
|
27,500
|
|
Rent received
|
-
|
21,000
|
|
Wages & Salaries
|
112,000
|
-
|
|
Telephone Charges
|
12,500
|
-
|
|
Stock at Jan 1, 2020
|
75,000
|
-
|
|
Cash
|
18,000
|
-
|
|
|
2,013,000
|
2,013,000
|
The following additional information has been made available:
1. Stock at December 31, 2020 was $175,000.
2. Wages owing $38,000.
3. Telephone charges prepaid by $10,500.
4. Fixtures & Fittings are to be depreciated by 10% on the straight-line basis.
5. Machinery & Equipment are to be depreciated by 5% on the reducing balance method.
6. Motor Vehicles are to be depreciated on a straight-line basis at rate of 15%.
Required -
1. Prepare an Income Statement.
2. List the Current Assets, Non-Current Assets and Liabilities.