Prepare the Statement of Comprehensive Income for the year ended 28 February 2022. (20 Marks)

INFORMATION

The following information was obtained from the accounting records of Jupiter Traders for the financial year ended 28

February 2022.

JUPITER TRADERS

PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022

Debit (R) Credit (R)

Balance sheet accounts section

Capital 1 901 000

Drawings 352 620

Land and buildings 1 400 000

Vehicles at cost 1 000 000

Equipment at cost 800 000

Accumulated depreciation on vehicles 600 000

Accumulated depreciation on equipment 400 000

Fixed deposit: Medi Bank (8 % p.a.) 250 000

Trading stock 135 000

Debtors control 217 000

Provision for bad debts 11 000

Bank 163 730

Creditors control 228 600

Loan: Medi Bank (18% p.a.) 350 000

Nominal accounts section

Sales 2 863 000

Cost of sales 1 045 000

Sales returns 40 000

Salaries and wages 607 000

Bad debts 22 000

Stationery 33 000

Rates and taxes 90 000

Motor expenses 149 000

Repairs and maintenance 26 000

Telephone 50 000

Electricity and water 75 000

Bank charges 9 000

Advertising 97 000

Interest on fixed deposit 16 000

Rent income 191 750

6 561 350 6 561 350

Adjustments and additional information

1. According to stocktaking the following were on hand on 28 February 2022:

1.1 Trading inventory R130 000

1.2 Stationery R3 000

2. An invoice received for the replacement of the tyres on the motor vehicles, R4 000, was not recorded.

3. The advertising amount includes a contract for R18 000 (6 adverts at R3 000 per month) that was taken for the

period 01 January 2022 to 30 June 2022.

4. A debtor who owed R4 000 was declared insolvent. His estate paid Jupiter Traders R2 600. The amount

received has been recorded but the rest of his account must now be written off.

5. The provision for bad debts must be adjusted to R10 000.

6. Interest is still outstanding on the fixed deposit. The investment in fixed deposit was made on 01 March 2021

and it matures on 30 September 2022.

7. The long-term loan from Medi Bank was taken on 01 February 2022. Interest for February 2022 is due to be

paid on 01 March 2022.

8. Provide for depreciation as follows:

8.1 On vehicles at 20% p.a. on the diminishing balance.

8.2 On equipment at 10% on cost.

9. Rent has been received for the period 01 March 2021 to 31 March 2022.

10. The electricity and water account for February 2022, R6 000, was erroneously posted to the rates and taxes

account.