I understood how to do the expenses, however im very confused as to how to do the income in the income statement. Because COS is already given, and also inventory is given, do we put inventory in income statement or balance sheet as current asset? Also i am confused as to where discounts received and discounts allowed would go. Thats why I am having trouble with the balance sheet as well. Someone please explain and help i am very confused right now.

Adiusted Trial Balance - $3,200 of the Rent expense specifically relates to the administration office. The remainder of this expense relates rent on the store. - 15% of the Electricity expense specifically relates to the administration office. The remainder relates to electricity used in running the store. - $8,960 of the Loan Payable needs to be repaid in the next 12 months. INCOME STATEMENT FOR THE YEAR ENDED 30TH JUNE 202

Question

I understood how to do the expenses, however im very confused as to how to do the income in the income statement. Because COS is already given, and also inventory is given, do we put inventory in income statement or balance sheet as current asset? Also i am confused as to where discounts received and discounts allowed would go. Thats why I am having trouble with the balance sheet as well. Someone please explain and help i am very confused right now.

image text in transcribed

Adiusted Trial Balance - $3,200 of the Rent expense specifically relates to the administration office. The remainder of this expense relates rent on the store. - 15% of the Electricity expense specifically relates to the administration office. The remainder relates to electricity used in running the store. - $8,960 of the Loan Payable needs to be repaid in the next 12 months. INCOME STATEMENT FOR THE YEAR ENDED 30TH JUNE 202