Reference no: EM132758575

Question - On December 31, 2018 the following Trial Balance was extracted from the books of Rosetta Park.

Details/Accounts Dr Cr

Capital - 151,350

Acc. Prov. for Depreciation: Fixtures and Fittings Jan. 2018 - 4,500

Acc. Prov. for Depreciation: Motor Vehicle Jan. 2018 - 4,950

Creditors - 40,500

Commission Received - 5,400

Rent Received - 18,000

Sales - 61,500

Purchases 17,400 -

Office Expenses 16,000 -

Miscellaneous Expenses 1,110 -

Salary and Wages 11,700 -

Carriage inwards 150 -

Telephone Expense 360 -

Bad Debt 2,600

Rent expense 3,150 -

Electricity Expense 1,710 -

Discounts allowed 240 -

Return Inwards 600 -

Stock, January 1, 2018 5,400 -

Debtors 58,500 -

Cash at Bank 35,100 -

Drawings 13,380 -

Land 58,800 -

Fixtures and Fittings 25,500 -

Motor Vehicle 34,500 -

286,200 286,200

The following additional information has been made available:

(a) Electricity expense accrued $3,790.

(b) Office expenses prepaid $1,700.

(c) Depreciation is to be provided for as follows: Motor Vehicle at 25% of cost; Fixtures and Fittings at 30% reducing balance method.

(d) Stock at December 31, 2018 was valued at $15,200.

Required -

a. Prepare Income Statement for the year ending December 31, 2018.

b. Prepare Balance Sheet as at December 31, 2018.