Prepare the Statement of Comprehensive Income for the year ended 28 February 2019. (34) NOTE: Please show all your calculations.

PANINI MACOY SOLE TRADER

Information extracted from the Pre-adjustment Trial Balance on 28 February 2019:

List of Balance and totals

R

Accumulated depreciation on equipment (01/03/2018)

85 000

Accounting fees

54 000

Bad debts

13 600

Bad debts recovered

4 750

Bank charges

7 760

Consumable stores

67 500

Cost of sales

3 150 000

Debtors' allowances

32 500

Accounts Receivable

88 500

Tender' fees

380 000

Equipment

250 000

Insurance

19 220

Interest income

?

Interest on loan

?

Land and buildings

1 600 000

Mortgage loan: XYP Bank

1 056 000

Allowance for doubtful debts (Negative Asset)

3 650

Rent income

169 500

Salaries and wages

475 000

Sales

5 500 000

Sundry expenses

140 085

Trading stock / Inventory

386 500

Vehicles

?

You are provided with information relating to PANINI MACOY SOLE TRADERS owned by Mr Panini.

Adjustments and additional information still to be taken in consideration at 28 February 2019:

1.Provide for depreciation as follows:

1.1. On old vehicles - R138 000

1.2. On new vehicles acquired during this financial year - R28 500

1.3. On old equipment - R13 300

1.4. On new equipment acquired during this financial year - R1 600

2.Goods sold on credit to debtor, W Xander, for R15 000 were not recorded. The cost price amounted to R9 375.

3.A physical stocktaking on 28 February 2019 reflected trading stock of R374 000 resulted in a trading stock deficit ofR3 125 which are normally expenses at year-end.

4.Consumable stores used during the financial year amounted to R61 700.

5.The account of debtor, M Masuka, must be written off as irrecoverable, R1 900.

6.Entries on the February 2019 Bank Statement not yet recorded in the books of the company:

6.1. Bank charges, R870

6.2. Debit order payment for the monthly insurance premium, R1 780

7.Allowance for doubtful debts must be adjusted to R4 030.

8.Loan statement received reflected the following:

Balance: 1 March 2018

1 356 000

Interest

?

Repayment during the financial year

300 000

Balance: 28 February 2019

1 200 000

9.An employee, R Crooks, who commenced work on 1 February 2019, was omitted from the Salaries Journal. All employee deductions are included in the gross salary. Contributions constitutes as salary expenses to the employer. Extracted details of his salary for February 2019 are:

GROSS SALARY

CONTRIBUTIONS

PENSION FUND

UIF

13 500

1 620

135

10. The rent income was increased by R1 500 per month from 1 November 2018. The tenant has not paid the rent for February 2019 yet.

11. Interest income is the missing figure in the Income Statement.

Calculation

Sales

Cost of sales

Gross profit

Other Operating Income

Rent Income

Bad debt recovered

Profit on sale of an asset

8 200

Gross Operating Income

(Gross profit + Operating Income)

2 522 075

Operating expenses

Tender fees

380 000

Accounting fees

Salaries and Wages