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.