The balance sheet of ABC Ltd as at 31 December 2021 and the cash receipts and payments for the year ended 31 December 2022 are as shown.

Additional information:
a As at 31 December 2022, the balance of accounts receivable was $25 000 and the balance of accounts payable was $15 000.
b Salaries are now paid monthly on the second of the month for the preceding month. Wages and salaries total $7000 for the month of December. This was paid on 2 January 2023.
c Plant and equipment is shown net of accumulated depreciation of $50 000. Depreciation expense for the year is calculated using the straight-line method at 10 per cent per annum.
d The bank loan accrues interest at a rate of 10 per cent per annum, payable on 30 March and 30 September. The loan was taken out on 31 December 2021.
e A physical stocktake, as at 31 December 2022, revealed that inventory costing $23 000 was on hand. Cost of goods sold for the year was calculated as $132 000.
f The insurance premium of $8000 provides cover for the year ended 30 September 2023.
Required:
1 Calculate the following:
a total sales for the period b gross profit c salaries expense and accrued salaries d interest expense and accrued interest e insurance expense and prepaid insurance.
2 What was the profit/(loss) for the period?
3 Prepare the balance sheet as at 31 December 2022.

Transcribed Image Text:

ABC LTD BALANCE SHEET AS AT 31 DECEMBER 2021 $ Liabilities Assets Cash 5 000 Accounts payable Accounts receivable 10.000 Bank loan Inventory 20 000 Shareholders' equity Plant and equipment 200 000 Share capital Land 100 000 Retained profits Total 335 000 Total S 10 000 80.000 200 000 45 000 335 000