ACC201 Financial Accounting Natsu Pte Ltd (NPL) is a company incorporated in Singapore and uses the Singapore Financial Reporting Standards (FRSs) Its financial year end is 31 December It is in the retail business The unadjusted trial balance of NPL as at 31 December 20X1 was as follows Account Title Debit Credit $ $ Cash 136,000 Accounts receivable 112,400 Inventory 16,600 Purchases 120,000 Purchase returns 5,000 Prepaid rental 24,000 Building 4,800,000 Accumulated depreciation Building 96,000 Accounts payable 48,400 Share capital 4,000,000 Retained earnings 688,000 Sales revenue 805,800 Salaries expense 504,400 Utilities expense 51,000 Notes payable short term 100,000 Unearned revenue 10,000 Salaries payable 11,200 5,764,400 5,764,400 Additional information NPL uses the periodic inventory system Stock count done at the end of the year indicated that the ending inventory is $10,000 On 1 September 20X1, the company paid $24,000 to rent a temporary space for a year to store some materials for a project The 6 month notes payable of $100,000 issued on 1 November 20X1 carries an annual interest rate of 6 to be paid on the maturity date The company made a sales of $46,000 to a customer during the month of December 20X1 The customer had been billed but would only pay NPL in 20X2 This has not been accrued For the utilities incurred in December 20X1, the account clerk had made the following entries Debit Salaries expense $2,800 and Credit Salaries payable $2,800 The unearned revenue of $10,000 was due to a cash payment by customer to NPL in November 20X1 for goods to be delivered in December 20X1 NPL delivered half of the goods in December 20X1 The building of $4,800,000 was purchased on 1 January 20X0 and depreciated on a straight line basis over fifty years NPL expects zero residual value at the end of its useful life Required b Prepare the Income Statement for NPL for the year ending 31 December 20X1, incorporating all the necessary adjustments (14 marks)

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ACC201: Financial Accounting Natsu Pte Ltd (NPL) is a company incorporated in Singapore and uses the Singapore Financial Reporting Standards (FRSs). Its financial year end

ACC201: Financial Accounting

Natsu Pte Ltd (NPL) is a company incorporated in Singapore and uses the Singapore Financial Reporting Standards (FRSs). Its financial year end is 31 December. It is in the retail business. The unadjusted trial balance of NPL as at 31 December 20X1 was as follows:

Account Title	Debit	Credit
	$	$
Cash	136,000
Accounts receivable	112,400
Inventory	16,600
Purchases	120,000
Purchase returns		5,000
Prepaid rental	24,000
Building	4,800,000
Accumulated depreciation - Building		96,000
Accounts payable		48,400
Share capital		4,000,000
Retained earnings		688,000
Sales revenue		805,800
Salaries expense	504,400
Utilities expense	51,000
Notes payable - short term		100,000
Unearned revenue		10,000
Salaries payable		11,200
	5,764,400	5,764,400

Additional information:

1. NPL uses the periodic inventory system. Stock count done at the end of the year indicated that the ending inventory is $10,000.
1. On 1 September 20X1, the company paid $24,000 to rent a temporary space for a year to store some materials for a project.
1. The 6-month notes payable of $100,000 issued on 1 November 20X1 carries an annual interest rate of 6% to be paid on the maturity date.
1. The company made a sales of $46,000 to a customer during the month of December 20X1. The customer had been billed but would only pay NPL in 20X2. This has not been accrued.
1. For the utilities incurred in December 20X1, the account clerk had made the following entries: Debit Salaries expense $2,800 and Credit Salaries payable $2,800.
1. The unearned revenue of $10,000 was due to a cash payment by customer to NPL in November 20X1 for goods to be delivered in December 20X1. NPL delivered half of the goods in December 20X1.
2. The building of $4,800,000 was purchased on 1 January 20X0 and depreciated on a straight-line basis over fifty years. NPL expects zero residual value at the end of its useful life.