Reference no: EM133135313

Question - John Boscow runs an advertising agency. His financial year ends on 31 March.

He provided the following information on 31 March 2019.

$

Motor vehicle at cost 12,480

Provision for depreciation of motor vehicle 5,460

Office equipment at cost 9,800

Provision for depreciation of office equipment 4,410

Income from clients 94,060

Wages 42,000

Office expenses 6,250

Commission received 1,050

Rates and insurance 10,000

Additional information

a. On 31 March 2019 commission receivable outstanding amounted to $190 and office expenses due amounted to $540.

b. During the year John Boscow has withdrawn $7,800 in cash. This has been debited to the wages account.

c. The rates and insurance include $3,000 for insurance of the premises. This represents cover for 15 months to 30 June 2019.

d. The motor vehicle is being depreciated at 25% per annum on the reducing (diminishing) balance method.

e. The office equipment is being depreciated at 15% per annum on the straight-line method.

Required - Prepare the Income Statement of John Boscow for the year ended 31 March 2019?