BROKEN HILL LTD BROKEN HILL LTD SOLUTION AREA BROKEN HILL LTD INCOME STATEMENT for the period 1-July 2020-30 June 2021 INCOME Sales Less: Sales returns and allowances Discount allowed Net Sales COST OF SALES Beginning Inventory Purchases Less: Purchases return and Allowances Discount Received Add: Freight inwards DATA AREA Account Debit Credit Share capital (730 000 shares fully $ 730,000 paid) General reserve 220,000 Retained earnings 60,000 Revaluation surplus 400 Current tax liability 20, 800 Accounts payable 50, 300 Debentures 400,000 Bank overdraft (current) 30, 700 Interest payable 15, 000 Sales salaries and commission payable 1, 700 Other liabilities (current) 30, 300 Land Land 400,000 Buildings 620,000 Accumulated depreciation - buildings 131,000 Furniture and equipment 160,000 Accumulated depreciation furniture 96,000 Delivery vehicles 60, 400 Accumulated depreciation vehicles 32, 080 Accounts receivable 68, 600 Inventory (1 July 2020) 240,000 Investments 200,000 Interest receivable 6,000 Prepaid insurance 3,000 Sales 538, 600 Interest revenue 6,000 Purchases 240,000 Sales returns and allowances 2, 080 Purchases returns and allowances 2,000 Freight inwards 10,080 Freight outwards 9, 060 Sales Salaries and Commissions 102, 200 Discount allowed 3,050 Discount received 3, 020 Less: Ending Inventory Cost of Sales GROSS PROFIT Other Income: Interest on investment EXPENSES Selling and distribution expenses Freight outwards Depreciation expense delivery vehicles Advertising expense Sales Salaries and Commissions Total Selling and Distribution expenses Administrative expenses Administrative expenses Depreciation expense furniture and equip't Depreciation expense buildings Insurance expense Total Administrative expenses