1) adjustments

2) charless adjusted trial balance as at 28 Feb. 2018

3) Charless statement of financial position

4) Charless income statement

Problem 22 The following trial balance was extracted from the books of Charles as the dose of business on 28 February 2018 Purchases and sales 11,280 19,740 Cash at bank 1,140 210 Cash in hand Capital account 1" March 2017 9.900 Drawings Office furniture Rent 2,850 1,440 1,020 2,580 690 Wages and salaries Discounts 360 Accounts receivable and payable 4,920 2,490 Stock 14 March 2017 2,970 Provision for doubtful debts 1 March 2017 270 Delivery van 2,400 Van running costs 450 Bad debts written off 810 32.760 132.760 The following additional information as at 28th February 2018 is available: (1) Stock at 28th February 2018 3,510. (2) Wages and salaries accrued at 28th February 2018 90. (3) Rent prepaid at 28 February 2018 E140. (4) Van running costs owing at 28 February 2018 60. (5) Increase the provision for doubtful debts by 60. (6) Provide for depreciation as follows: Office furniture 180, Delivery van 480 Required: Draw up an income statement for the year ending 28 February 2018 together with a statement of financial position as at 28 February 2018, using vertical formats throughout. (Please use templates out of icef info.hseru.) ADJUSTMENTS (1) (6) Charles's adjusted trial balance as at 28 February 2018 Dr I cr Purchases (IS, cost of sales) Sales (IS, sales) Cash at bank (SoFP, CA) Cash in hand (SoFP, CA) Capital account 1* March 2017 (SoFP, Capital) Drawings (SoFP, Capital) Office furniture (SOFP, FA) Rent (IS, expenses) Wages and salaries (IS, expenses) Discounts allowed (IS, expenses) Discounts received (IS, expenses) Accounts receivable (SoFP, CA) Accounts payable (SOFP, CL) Stock 1" March 2017 (opening inventory) (IS, cost of sales) Provision for doubtful debts (SoFP, CA) Delivery van (SoFP, FA) Van running costs (IS, expenses) Bad debts written off (IS, expenses) Stock (SoFP, CA) Stock 28th February 2018 (closing inventory) (IS, cost of sales) Accruals (SoFP, CL) Prepaid rent (SoFP, CA) Increase in provision for doubtful debts (IS expenses) Depreciation expenses (Is, expenses) Provision for depreciation, office furniture (SoFP, FA) Provision for depreciation, delivery van (SoFP FA)