Reference no: EM13509379
The following is the statement of financial position of TT Ltd. at the end of the first year of trading
Statement of Financial Position as at 31st December 2013
Current Assets
Cash At Bank $750
Prepaid Expenses $5 300
Accounts Receivable $19,600
Inventory $65,000
$90,650
Non-Current Assets
Motor Vehicles- Cost $12,000
Accumulated Depreciation ($2,500)
$9,500
TOTAL ASSETS $100,150
Current Liabilities
Accrued Expenses $1,250
Accounts Payable $22,000
$23,250
Owner's Equity
Original $50,000
Retained Profit $26,900
$76,900
Total Liabilities And Owner's Equity $100,150
• Prepaid expenses included $5,000 for rent and $300 for rates.
• Accrued expenses included wages of $630 and electricity of $620.
During 2014, the following transactions took place:
• The owner's withdrawal capital In the form of cash of $20,000
• A premise continues to be rented at an annual rental of $20,000. During the year, rent of $15,000 was paid to owner of the premises.
• Rates on the premises were paid during the year for period 1st April 2014 to 31st March 2015, $1,300.
• A second delivery vehicle was bought on 1st January for $13,000. This is expected to be used in business for four years and then be sold for $3,000.
• Wages totalling $36,700 were paid during the year. At the end of the year the business owed $860 of wages for the last week of the year,
• Electricity bills totalling $1,820 for the first three quarters of the year were paid. After 31st December 2014, once the accounts had been finalised for the year, the bill for the last quarter arrived showing a charge of $690.
• Inventory totalling $67,000 was bought on credit.
• Inventory totalling $8,000 was bought for cash.
• Sales on credit totalled $179,000 (cost $89,000).
• Cash sales totalled $54,000 (cost $25,000).
• Receipts from accounts receivable totalled $178,000.
• Payments to accounts payable totalled $71,000.
• Vehicle running expenses paid totalled $16,200.
REQUIRED
Prepare a Statement of Financial Position as at 31st December 2014 and a Statement of Comprehensive Income for the year to date.