REQUIRED a) Prepare Income Statement for the year ended December 31, 2020. b) Prepare Balance Sheet in classified account form as of December 31, 2020
Q#3 Following in the adjusted
ACCOUNT TITLES DEBIT CREDIT
Cash 150000
Inventory 10,000
Prepaid rent 50,000
Office Supplies 60,000
Land 900,000
Building 800,000
Accounts payable 80,000
Salaries payable 55,000
Long term loan 390,000
Purchases 400,000
Sales 600,000
Purchase returns 18,000
Sales returns 14,000
Transportation-in 5,000
Interest expense 2,000
Salaries expense 44,000
Depreciation expense 29,000
Electricity expense 5,000
Interest expense 5,000
Interest payable 25,000
Commission Income 22,000
Capital 1,254,000
Drawing 10000
Total 2,484,000 2,484,000
Inventory Closing Rs. 50,000
REQUIRED
a) Prepare Income Statement for the year ended December 31, 2020. b) Prepare Balance Sheet in classified account form as of December 31, 2020
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