David Smith Trading as MicroSystems Income Statement for the Month Ended 31 July 2021 Sales $58,750 Less: Cost of goods sold 30,650 Gross profit 28.100 Less: Operating Expenses Advertising expense $2,800 Cleaning expense 140 Depreciation expense 375 Doubtful debts expense 1,714 Electricity expense 1,900 Insurance expense 350 Maintenance and repairs 230 Rent expense 5,000 Telecommunications expense 850 Training expense 120 Wages expense 2,850 16,329 Operating prot 11.771 Less: Interest expense 300 Net prot $11,471 David Smith Trading as MicroSystems Balance Sheet as at 31 July 2021 Assets Current Assets Accounts receivable $34,280 Less: Allowance for doubtful debts 1,714 $32,566 Inventory 21,860 Prepaid insurance 3,850 Prepaid rent 25,000 Total Current Assets (a) 83,276 Non-Current Assets Office equipment 890 Fixtures and fittings 12,000 Less: Accum. Dep'n - Fixtures and fittings 125 11,875 Motor vehicles 24,000 Less: Accum. Dep'n - Motor vehicles 250 23,750 Total Non-Current Assets (b) 36,515 Total Assets (a + b) 119,791 Liabilities Current Liabilities Bank overdraft 520 Accounts payable 27,000 Accrued expenses 2,750 Interest payable 300 Wages payable 950 Total Current Liabilities (c) 31,520 Non-Current Liabilities Loan 60,000 Total Non-Current Liabilities (d) 60,000 Total Liabilities (c + d) 91,520 Net Assets (Total Assets - Total Liabilities) $28,271 Equity Contributed capital (as at 01.07.2021) $24,000 Add: Net profit (for month ended 31.07.2021) 11,471 Less: Drawings (for month ended 31.07.2021) 7,200 Equity (as at 31.07.2021) $28,271