Embassy Traders Statement of Comprehensive Income as at: 28 February 2021 Sales ? Cost of sales (795 000) Gross profit ? ? Other operating incomes 159 400 Rent income ? ? ? Gross operating income 1 424 400 Operating expenses (1 020 100) Wages and salaries 586 000 Bad debts ? Stationery ? Rates and taxes ? Motor expenses 32 000 Advertising ? Telephone 44 000 Electricity and water ? Bank charges ? Insurance ? Donation 1 000 ? ? Depreciation on equipment ? Depreciation on vehicles ? Operating profit 404 300 Interest income ? Interest expense ? Net profit for the year 392 600 Adjustments and additional information 1. Trading goods, cost R1 000, were donated to a school on 27 February 2021. This transaction has not yet been recorded. 2. A physical stocktaking on 28 February 2021 showed the following inventories on hand: 1.Trading inventory R148 000 2. Stationery R4 000 1. Write off the account of debtor, R. Brown, R2 000. 2. The provision for bad debts must be decreased to R9 000. 3. Rent income amounts to R13 200 per month. Make the necessary adjustment. 4. The water and electricity account for February 2021, R7 000, was due to be paid on 3 March 2021. 5. Rates and taxes include an amount of R15 000 that was paid for the period 1 January 2021 to 3 March 2021. 6. An amount of R500 appeared in the February 2021 bank statement for bank charges. This amount was not recorded. 7. The investment in fixed deposit was made on 1 March 2019. Provide for the outstanding interest. 8. Provide for the outstanding interest on loan, R3 700. 9. A payment of R3 000 for insurance was erroneously debited to the advertising account. 10. Provide depreciation as follows: 1. On equipment at 10%, using the fixed instalment method. 2. On vehicles at 20%, using the diminishing balance method.
Embassy Traders
Statement of Comprehensive Income as at: 28 February 2021
|
Sales |
? |
|
Cost of sales |
(795 000) |
|
Gross profit |
? |
|
|
? |
|
Other operating incomes |
159 400 |
|
Rent income |
? |
|
? |
? |
|
Gross operating income |
1 424 400 |
|
Operating expenses |
(1 020 100) |
|
Wages and salaries |
586 000 |
|
|
? |
|
Stationery |
? |
|
Rates and taxes |
? |
|
Motor expenses |
32 000 |
|
Advertising |
? |
|
Telephone |
44 000 |
|
Electricity and water |
? |
|
Bank charges |
? |
|
Insurance |
? |
|
Donation |
1 000 |
|
? |
? |
|
|
? |
|
Depreciation on vehicles |
? |
|
|
|
|
Operating profit |
404 300 |
|
Interest income |
? |
|
Interest expense |
? |
|
|
|
|
Net profit for the year |
392 600 |
Adjustments and additional information
1. Trading goods, cost R1 000, were donated to a school on 27 February 2021. This transaction has not yet been recorded.
2. A physical stocktaking on 28 February 2021 showed the following inventories on hand:
1.Trading inventory R148 000
2. Stationery R4 000
1. Write off the account of debtor, R. Brown, R2 000.
2. The provision for bad debts must be decreased to R9 000.
3. Rent income amounts to R13 200 per month. Make the necessary adjustment.
4. The water and electricity account for February 2021, R7 000, was due to be paid on 3 March 2021.
5. Rates and taxes include an amount of R15 000 that was paid for the period 1 January 2021 to 3 March 2021.
6. An amount of R500 appeared in the February 2021 bank statement for bank charges. This amount was not recorded.
7. The investment in fixed deposit was made on 1 March 2019. Provide for the outstanding interest.
8. Provide for the outstanding interest on loan, R3 700.
9. A payment of R3 000 for insurance was erroneously debited to the advertising account.
10. Provide depreciation as follows:
1. On equipment at 10%, using the fixed instalment method.
2. On vehicles at 20%, using the diminishing balance method.
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