Dr.	Cr.
Particulars	$	$
Building	250,000
Motor vehicle	120,000
Furniture	200,000
Cash	99,750
Purchases	230,200
Nordstrom	89,500
Bank	45,000
Capital		420,000
Expenses	15,000
Loan- First Union Bank		260,000
Outstanding rent		15,000
Sales		510,000
Purchase return		6,000
Commission received		20,000
Advertising expense	60,000
Electricity charges	60,000
Discounts	5,250
Stationeries	21,000
Sales return	5,500
Water rates	25,000
Staff salaries	85,000
Security fees	25,000
Neiman Marcus	65,000
Manolo Blahnik		35,200
Drawings	15,000
Courts Ltd		150,000
	1,416,200	1,416,200

	Adjustment entries
Date	Particulars	Dr.	Cr.
May 30	Water charges a/c Outstanding water charges a/c Overpaid salary a/c Salary a/c Insurance a/c Cash a/c Bad debt a/c Neiman Marcus a/c Commission received a/c Prepaid commission receiv a/c Depreciation a/c Building (9%*250,000)/12 Motor vehicle (15%*120,000)/12 Furniture (12%*200,000)/12	5,000 4,500 4,000 4,000 3,000 5,375	5,000 4,500 4,000 4,000 3,000 1,875 1,500 2,000

Question :

1. Prepare the Statement of Profit or Loss and the Statement of Financial Position for the period under review. For use in the financial statements, closing stock amounts to $25,000 at the end of the month.