ADDITIONAL INFORMAHON AT 31 JANUARY 2023: - Wages and salaries unpaid at 31 January $8,000 - Telephone account received but unpaid $2?!) - Acme Suppliers charges interest on overdue account $50 - Depreciation is to be calculated for one full month using the straight line method at the following rates: 0 Motor Vehicle 16% p.a. o Office equipment 30% pa. 0 Building 5% pa. I inventory on hand as per physical count $211,700 Ranked a) Prepare an income statement for the month of January 2023. b} Prepare a classified balance sheet as at 31\" January 2023. 4+4 =lmarlrs Question 1 On January 1 2023, Ex proprietor of 03 Leisure Products had the following balance sheet: Current Assets Cash at Bank $404,000 Inventory $256,000 Accounts Receivable - $20,000 Prepayments - Rent m $682,000 Hon Current assets Office Equipment $60,000 Less Accumulated Depreciation - Office Equipment (510'0001 550,000 m Current Liabiiities Accounts Payable - Acme Supplies $10,000 Accrued Expenses - wages 52,000 $12,000 Non Current Liabilities 8% Loan - Lendcheap. Finance {Due December 2026] $40,000 Proprietorship Capital - Cl 680 000 m During the rest of January the following transactions occurred: Jan 2 Cash Sales of inventory $2,400 3 Paid FairPrint Press Ltd for advertising in January edition of industry journals $640 4 Purchased for cash land, buildings and vehicle $150,000 Independent valuation of these assets were Land $120,000 Buildings $150,000 Vehicle $30,000 5 Renewal of lease on rental premises from Prestgo Rentals paying $12,000 rent in advance for 6 months from 1 February 2023 to July 31 2023 6 Supplied to M White plant on account $4,000 Terms 7 days 8 Engaged L Trippers to commence on 17 January at a salary of $2000 per week to assist as Sales Manager 9 Purchased inventory on credit from Outdoor Equipment Ltd $16,000 10 Received an order from P Price for goods to be delivered on 13 January and invoiced at $24,000 11 Paid vehicle running expenses $800 12 Paid for lighting and heating $320 13 Sold goods to L Hardman for cash $64,000 14 L Hardman returned some of the goods delivered on 13 January and received a credit note for $300 15 Embarked upon a campaign, costing $2,800 cash distributing catalogues to customers 16 Cash Sales $3,600 17 Paid ofce expenses $1,240 18 Paid Aussie Wide insurance for annual premiums expiring December 31, 2023, $3,600 19 Withdrew cash for private use 5500 20 Paid cash for office expenses $60 21 Paid wages $32,000 22 Banked cash sales 52,800 23 Withdrew cash for own purposes $320 24 Paid Outdoor Equipment Ltd $15,200 in full settlement 25 Paid L Trippers salary for a week 52,000 28 Sent M White notice of his overdue account and charged him $360 interest thereon