Reference no: EM132776217
Question - L&T is a company specialized in selling Phones. Its first month of operation is January 2016 in which the following transactions were undertaken
Jan 1: issue capital stock of £330,000in cash
Jan 2: Borrowed £230,000 from the bank at an annual interest rate of 5.5%
Jan 3: Purchased 100 Phones at £500 per Phone
Jan 4: Purchased Building at £60,000. The company paid £25,000 and agreed to pay the rest on a note payable
Jan 8: Paid rent for the month of January at £1650
Jan 15: Received investment of £160,000 from the owners
Jan 20: Sold 47 phones at £1150 each
Jan 24: Purchased Furniture at £27,000. The company paid £12000 and agreed to pay the rest on account
Jan 27: Paid salaries at £5000
Jan 29: Paid one month of interest
Jan 30: Paid dividends of £900
Jan 31: Paid income taxes at 11.3%
Required - Preparation of a proper Income Statement and Balance sheet for L&T?