3.15 LO7 Prepare an income statement for the year ended 30 June 2017 given the following account balances.

(Note: Some accounts may not be relevant.)

Cash 3,000 Sales 280,000 Salary and wages 37,000 Accounts receivable 15,000 Loan interest 4,000 Insurance 2,000 Loan 40,000 Telephone and postage 1,500 Rent and rates 12,400 Cost of sales 160,000 Inventory 11,000 Accounts payable 9,100 Heat and light 3,700 Motor vehicles 32,000 Equipment repairs 1,600 Depreciation—motor vehicles 4,500 Motor vehicle running costs 1,700 Depreciation—equipment 3,200 Royalties received 1,700 Accounting and audit 3,400 Bad and doubtful debts 800 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018 — 9781488616570 — Atrill/Accounting for Business Students 1e Atrill, Peter, et al. Accounting for Business Students eBook, P.Ed Australia, 2017. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/usyd/detail.action?docID=5220577.

Created from usyd on 2018-03-05 16:43:06.

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CHAPTER 3 MEASURING AND REPORTING FINANCIAL PERFORMANCE 151