Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How Do I prepare an income statement and Balance sheet for this question? thankyou in advance. 1. A list of accounts of a business at

image text in transcribedimage text in transcribedHow Do I prepare an income statement and Balance sheet for this question? thankyou in advance.

1. A list of accounts of a business at the start of a week is as follows: Trade debtors Inventory Furniture and fittings Freehold premises Trade creditors Bank overdraft Owner's equity 33,000 28,000 63,000 145,000 23,000 43,000 203,000 During the week the following transactions take place: Sold inventory for $11,000 cash. The inventory has cost $8,000 Sold inventory for $23,000 on credit. This inventory had cost $17,000 Received cash from trade debtors totalling $18,000 The owners of the business introduced $100,000 of their own money which was placed in a business bank account Bought a motor vehicle, for $40,000. Paid $10,000 cash. Balance a loan from ABC Finance Paid wages $1500 cash Bought inventory on credit for $14,000 Paid weekly Rent $350 Paid trade creditors for $13,000 Paid Gas account $150 . Prepare a workbook and post these opening balances and transactions Prepare an Income Statement and a Balance Sheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CIA Review Part 2 Internal Audit Practice For The New 3 Part Exam

Authors: Irvin N.Gleim

17th Edition

158194375X, 978-1581943757

More Books

Students also viewed these Accounting questions