CORPORATE FINANCIAL STATEMENT Q # 5 ABC LTD. was registered with an authorized capital of Rs. 6,000,000 divided into 1,000,000 ordinary shares of Rs. 10 each. The following balances appeared in the Balance Sheet of ABC LTD. as on June 30, 2017: Cash ASSETS Accounts Receivable Merchandise July 01, 2016 Plants and Equipment Purchases Transportation in Salaries expenses Unexpired insurance Rent expenses Auditor's fee expenses Director's fee expenses Total Rs. EQUITY Rs. 661,000 Accounts payable 75,000 655,000 Accumulated dep. (Plants) 230,000 25,000 Outstanding Utilities 8,000 1,600,000 20% Bonds payable 480,000 Paid up capital 500,000 1,000,000 1,550,000 59,000 200,000 20,000 Sales Revenue 80,000 Retain Earnings 8,000 Mortgage Payable 35,000 30,000 28,000 3,022,000 Total 3,022,000 Data for adjustments on June 30, 2017 i. ii. iii. iv. V. vi. vii. Outstanding advertising amounted to Rs. 4,000 Insurance expired Rs. 1,000. Machinery be depreciated by 25% for each year Inventory at June 30, 2010 was valued at Rs. 80,000 Salaries unexpired Rs. 5,000 Rent is due Rs. 10,000 Provide 40% for income tax. viii. Cash dividend was declared 15% on paid up capital Required a. Income statement for the year ended June 30, 2017. b. Statement of retain earnings and balance sheet for the year ended June 30, 2017