1) John Brown operated a store and provided a trial balance as of December 31, 20X7 with various revenue, expense, asset and liability accounts.
2) Adjustments included an increase in closing stock, accrued wages, prepaid rates, an increase in provision for doubtful debts, outstanding telephone charges, and depreciation of shop fittings and a van.
3) The document instructs to prepare an income statement for the year ended December 31, 20X7 and a statement of financial position as of that date using the provided trial balance and adjustment information.
1) John Brown operated a store and provided a trial balance as of December 31, 20X7 with various revenue, expense, asset and liability accounts.
2) Adjustments included an increase in closing stock, accrued wages, prepaid rates, an increase in provision for doubtful debts, outstanding telephone charges, and depreciation of shop fittings and a van.
3) The document instructs to prepare an income statement for the year ended December 31, 20X7 and a statement of financial position as of that date using the provided trial balance and adjustment information.
1) John Brown operated a store and provided a trial balance as of December 31, 20X7 with various revenue, expense, asset and liability accounts.
2) Adjustments included an increase in closing stock, accrued wages, prepaid rates, an increase in provision for doubtful debts, outstanding telephone charges, and depreciation of shop fittings and a van.
3) The document instructs to prepare an income statement for the year ended December 31, 20X7 and a statement of financial position as of that date using the provided trial balance and adjustment information.
1) John Brown operated a store and provided a trial balance as of December 31, 20X7 with various revenue, expense, asset and liability accounts.
2) Adjustments included an increase in closing stock, accrued wages, prepaid rates, an increase in provision for doubtful debts, outstanding telephone charges, and depreciation of shop fittings and a van.
3) The document instructs to prepare an income statement for the year ended December 31, 20X7 and a statement of financial position as of that date using the provided trial balance and adjustment information.
From the following trial balance of John Brown, store owner, prepare a trading account and profit and loss account for the year ended 31 December 20X7, and a balance sheet as at that date, taking into consideration the adjustments shown below:
Trial Balance as at 31 December 20X7
Dr Cr £ £ Sales 400,000 Purchases 350,000 Sales returns 5,000 Purchases returns 6,200 Opening stock at 1 January 20X7 100,000 Provision for doubtful debts 800 Wages and salaries 30,000 Rates 6,000 Telephone 1,000 Shop fittings at cost 40,000 Van at cost 30,000 Debtors and creditors 9,800 7,000 Bad debts 200 Capital 179,000 Bank balance 3,000 Drawings 18,000 593,000 593,000
(i) Closing stock at 31 December 20X7 £120,000.
(ii) Accrued wages £5,000. (iii) Rates prepaid £500. (iv) The provision for doubtful debts to be increased to 10 per cent of debtors. (v) Telephone account outstanding £220. (vi) Depreciate shop fittings at 10 per cent per annum, and van at 20 per cent per annum, on cost.
a) Prepare an income statement for the year ended 31 December 20X7.
b) Prepare a statement of financial position as at 31 December 20X7
