On 1 July 2014 Sergio Bari opened a shop called MiGame Ltd. The trial balance for the first year is shown below.

Additional information at 30 June 2015:
* Inventory is valued at £890.
* Advertising paid in advance is £260.
* Accrued expenses are lighting and heating £540, telephone and Internet £290 and general expenses £160.
* Estimated current tax payable is £1,200.
Required

(a) Using a spreadsheet, prepare a draft statement of comprehensive income for MiGame Ltd for the year ended 30 June 2015 classifying expenses by nature.
In addition, prepare a draft statement of financial position at that date.

(b) After taking advice from his accountant, Sergio has decided to depreciate equipment using the straight-line method over five years, with no residual value. He has also decided to make an allowance for doubtful receivables and has decided to base it on 10% of opening trade receivables. Make these adjustments to your spreadsheet and prepare a statement of comprehensive income for MiGame Ltd, classifying expenses by nature. In addition, prepare a statement of financial position at that date.

Transcribed Image Text:

MiGame Ltd Trial balance at 30 June 2015 Debit Credit Revenue 75,200 Purchases 12,160 Plant and equipment at cost 25,000 (Continued)