ADJUSTMENTS AND STATEMENTS XYZ Traders Information: Extract from pre-adjustment Trial Balance on 30 September 2020 Balance Sheet Accounts Debit Credit Loan from ACE Bank 751 200 Debtors' Control 185 000 Creditors' Control 126 075 Provision for bad debts 10 725 564 000 Trading Stocks Employee Tax 15 000 Pension fund 23 500 Nominal Accounts Sales 9 600 000 Cost of Sales 6 400 000 Debtors' Allowances 168 000 386 100 Sundry expense Bank charges 62 850 Commission income 96 200 Packing materials 23 100 Bad debts 26 400 Repairs and Maintenance 161 200 Salaries and Wages 985 000 Pension fund contributions 108 350 Interest income 4 000 Advertising 56 800 Rent income 131 580 Adjustments 1. Provide for $417 300 depreciation for the financial year. 2. On 29 September, F Miller, a debtor, returned merchandise. A credit note for $4 500 was issued to her. The cost price was $3 000. No entries were made for the return of the merchandise. These items were placed back in stock. 3. The insolvent estate of a debtor, N Johnson, paid out 40 cents in the rand and made a direct deposit of $3 016 on 30 September 2020. This transaction was not recorded. 4. The advertising expense is a fixed monthly contract with the local newspaper for the 12 months ending 30 September 2020. The monthly charge was increased by 12% on 1 June 2020. The premium for September 2020 was still outstanding. 5. Monthly rent has remained unchanged during the financial year. During August 2020, the tenant paid $9 000 for repairs to the premises. As XYZ Traders is responsible for all repairs, the tenant deducted this amount from the rent that he paid for August 2020. Note that the rent for September 2020 has not been received yet. Required Prepare the income Statement (Statement of Comprehensive Income) for the year ended 30 September 2020. ADJUSTMENTS AND STATEMENTS XYZ Traders Information: Extract from pre-adjustment Trial Balance on 30 September 2020 Balance Sheet Accounts Debit Credit Loan from ACE Bank 751 200 Debtors' Control 185 000 Creditors' Control 126 075 Provision for bad debts 10 725 564 000 Trading Stocks Employee Tax 15 000 Pension fund 23 500 Nominal Accounts Sales 9 600 000 Cost of Sales 6 400 000 Debtors' Allowances 168 000 386 100 Sundry expense Bank charges 62 850 Commission income 96 200 Packing materials 23 100 Bad debts 26 400 Repairs and Maintenance 161 200 Salaries and Wages 985 000 Pension fund contributions 108 350 Interest income 4 000 Advertising 56 800 Rent income 131 580 Adjustments 1. Provide for $417 300 depreciation for the financial year. 2. On 29 September, F Miller, a debtor, returned merchandise. A credit note for $4 500 was issued to her. The cost price was $3 000. No entries were made for the return of the merchandise. These items were placed back in stock. 3. The insolvent estate of a debtor, N Johnson, paid out 40 cents in the rand and made a direct deposit of $3 016 on 30 September 2020. This transaction was not recorded. 4. The advertising expense is a fixed monthly contract with the local newspaper for the 12 months ending 30 September 2020. The monthly charge was increased by 12% on 1 June 2020. The premium for September 2020 was still outstanding. 5. Monthly rent has remained unchanged during the financial year. During August 2020, the tenant paid $9 000 for repairs to the premises. As XYZ Traders is responsible for all repairs, the tenant deducted this amount from the rent that he paid for August 2020. Note that the rent for September 2020 has not been received yet. Required Prepare the income Statement (Statement of Comprehensive Income) for the year ended 30 September 2020
