Answered step by step
Verified Expert Solution
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
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 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 SheetStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started