Accounting practice

The trial balance, adjustment and additional information given below were extracted from the accounting records of Art Traders on 28 February 2020, the end of the financial year. REQUIRED Prepare the Statement of Comprehensive Income for the year ended 28 February 2021. PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2020 Debit (R) Credit (R) 884 000 264 000 664 000 136 000 61 000 Balance sheet accounts section Capital Drawings Land and buildings Equipment at cost Accumulated depreciation on equipment Fixed deposit: Harvey Bank 10% p... Trading inventory Trade Debtors Bank Cash float Trade Creditors Loan: Harvey Bank 30 000 162 000 47 000 290 000 2 ODO 45 000 87 000 1760 000 895 000 28 000 180 000 Nominal accounts section Sales Cost of sales Sales retums Salaries and wares Rent income Commission income Stationery Advertising Telephone 33 000 4 000 7 000 50 000 17 000 24 000 Electricity and water Bank charses 3 000 Insurance Interest on loan Sundry expenses 15 000 17 000 43 000 2 874 000 2 374 000 Adjustments and additional information 1. According to physical stocktaking the value of trading inventory on hond on 28 February 2021 amounted to R15 8 000. Stationery unused during the accounting period, according to a physical count, amounted to 2. R1 000. 3. Rent has been received for the period 01 March 2020 to 31 January 2021. The telephone account for February 2021, R1 500, has not yet been paid. An invoice for advertising has been received from a local newspaper but no entry has been 5. made for this, RS 000. 6. The insurance total includes an insurance premium of R3 000 that was paid for the period 01 July 2020 to 30 June 2021. 7. Interest on loan unpaid for February 2020 amounted to R1 500. Interest is owing to Art Traders on the fixed deposit. The investment was made on 8. 01 March 2020. 9. Provide for depreciation on equipment at 20% per year on cost. 10. D. Donna, a debtor, who owed R1 000 was declared insolvent. Her account must now be written off. 11. A payment of R2 000 for water and electricity was erroneously entered in the sundry expenses account. Correct the error