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 202 1 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 in running the store The Loan Payable was taken out over a term of 5 years QUESTION 2 Enal Statement (4) yer What the end of at the TIL JAMI 1 1 COLL Advert Am CCI 2020 CL 18 18 Ecogs MIN w Deddy LEROY SOD D AR Adve pred DER SI the with There hank u Mity Half en The The Loom Answer on followiniert ditonal peers ered

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In your role as a Graduate Accountant at Crase & Stone Accounting Services you have been supplied with the following adjusted Trial Balance for Lounge

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.

QUESTION 2 Enal Statement (4) yer What the end of at the TIL JAMI 1.1 COLL Advert Am CCI 2020 CL | 18 18 Ecogs MIN w Deddy LEROY SOD D AR Adve pred DER SI! . the with There hank u!= Mity Half en The The Loom Answer on followiniert ditonal peers ered