Assignment
J. Bright drew up the following trial balance as at 30 September 2008.
You are to prepare an Income Statement for the year ended 30 September 2008 and a Balance Sheet as at that date.
Dr ($) Cr ($)
Loan from P. Parkin 5,000
Capital 25,955
Drawings 8,420
Cash at bank 13,115
Cash at hand 295
Debtors 12,300
Creditors 9,370
Stock 30 September 2007 23,910
Motor Van 6,000
Office Equipment 8,000
Provision for Depreciation: motor van 1,900
Provision for Depreciation: office equipment 1,750
Sales 130,900
Purchases 92,100
Return Inwards 550
Carriage Inwards 215
Return Outwards 307
Carriage Outwards 309
Rent Received 10,000
Motor Expenses 1,630
Rent and rates 2,970
Telephone 405
Salary 12,810
Insurance 492
Office Expenses 1,377
Sundry Expenses 284
185,182 185,182
Notes:
1) Prepaid expenses: insurance, $105
2) Expenses owing: rent, $300; telephone $85
3) The owner estimates that 2% of debtors will be bad and a provision is to be set up for these.
4) Stock as at 30 September 2008 is valued at $27,475.
5) Depreciate motor van at 20% reducing balance; office equipment at 10% on cost.
Format your assignment according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.