can someone explain me how they calculated prepaid expenses, accrued electricity and retained. profit, where they took this numbers from and why? ty

demonstrate and expo statement of financial position 5. Th Requ Prepa State! nowledge and understandiny the question. prepare at least one ser estions in Chapters 7 lance and the notes 5.7 Test your knowledge and 5.7.1 Sample examination question least one set of basic financial You will usually be asked to prepare at mation provided in the quest statements in the examination, from info all of the items discussed in this This may involve dealing with any or a chapter. We will see how best to approach these questions in Chan and 8 of this subject guide but use this simple trial balance and the underneath to produce the two financial statements. 5.1 Company A The Trial Balance of Company A, after all transactions, at 31 Decemh 20X4 is as follows: 1,400 9,800 200 4,250 500 Bank Receivables Provision for bad debts at 1.1.X4 Payables Share capital Share premium Retained profits Electricity Rent 1,500 1,000 2,900 4,500 10,600 109,000 Wages Sales Purchases Inventory at 1.1.X4 General expenses Prepaid rent at 1.1.X4 Accrued electricity at 1.1.X4 55,700 20,650 10,900 800 800 117,250 117,250 Chapter 5: Accounting adjustments 1 Additional information ventory at 31.12.X4 has a selling price of $27,900 and has been ked-up at 50 per cent. However, items costing $500 are damaged and will be sold for $100. , Rents paid for the y/e 31.3.X5 were $4.000 tricity has been paid to 30.11.X4. Electricity for the quarter to 28.2.X5 is expected to be $1,200. 4. A receivable of 300 is to be written off. 5 The provision for bad debts is to be 2 per cent of receivables. Required epare a Statement of Financial Position at 31.12.X4 and an Income Statement for the year ended on that date. 127.2005)-400 Gross profit Expenses Electricity Rent Wages General expenses Bad debt expense 2500-300-400 4500-800-1000 Bad debt provision decrease Profit for the year Company A: S of FP at 31.12.X4 Current assets: Inventory Receivables Less bad debt provision (27.900/15)-400 9800-300 2% of 9,500 18.200 9.500 (199) 1/4 of 4,000 9310 1.000 Prepaid rent Bank Total assets Liabilities & equity Current liabilities: Payables Accrued electricity 1,400 29,910 1/3 of 1,200 4,250 400 4,650 Equity: Share capital Share premium Retained profits 500 1,500 23,260 1,000+22,260 25,260 29,910