In your role as a Graduate Accountant at Crase & Stone Accounting Services you have been supplied with the following adjusted Trial Balance for Lounge Around Furniture Market, prepared at the end of the financial year by the business owner, Chaz Lounge.

REQUIRED:

Using the Trial Balance provided below, prepare the following for the period in question:

a) Fully classified Income Statement[20 marks]

b) Statement of Changes in Equity [4 marks]

c) Fully classified Balance Sheet (Narrative format)[16 marks]

Lounge Around Furniture Market Adjusted Trial Balance For the year ended 30 June 2021
	Debit ($)	Credit ($)
Cash at Bank	50,600
Accounts Receivable	53,900
Inventory (30 June 2021)	23,056
Allowance for Doubtful Debts		1,100
Prepaid Advertising	1,694
Shop Furniture & Fittings	27,500
Accumulated Depreciation Shop Furniture & Fittings		9,922
Sales Equipment	15,840
Accumulated Depreciation Sales Equipment		5,456
Advertising Payable		4,950
Accounts Payable		17,600
Interest Payable		660
Loan Payable		36,960
C. Lounge - Capital (1 July 2020)		43,835
C. Lounge - Drawings	20,350
Sales		605,209
Sales Returns & Allowances	9,493
Discount Received		3,410
Electricity Expense	1,760
COS	424,831
Depreciation Expense Shop Furniture & Fittings	3,905
Depreciation Expense Sales Equipment	3,168
Freight Inwards	3,102
Rent Expense	32,230
Discount Allowed	4,070
Salaries Expense -Store	36,740
Advertising Expense	616
Interest Expense	517
Doubtful Debts Expense	1,100
Salaries Expense - Admin	14,630
Totals	729,102	729,102

Chaz has provided the following additional information to assist you with your statement preparation:

$6,500 of the Rent expense specifically relates to the administration office. The remainder of this expense relates rent on the store.

20% of the Electricity expense specifically relates to the administration office. The remainder relates to electricity used inrunning the store.

The Loan Payable was taken out over a term of 5 years.