Q3: Prepare Income Statement and Balance Sheet from the following Trial Balance

Saadah Merchandized Company
Trial Balance June 2021
Debit		Credit
Cash	19000
Machinery	16000
Opening Inventory	30000
Interest		6000
Salaries	10000
Furniture	12000
Long term loans		13200
Accounts payable		7000
Capital		51000
Service Revenue		8000
Sales		20000
Drawings	1200
Purchases	9000
Telephone Expenses	8000
Total	105200	105200

Adjustment information:

1] Depreciation on Machinery 20% per annum and on furniture 10% per annum

2] Closing Inventory for merchandise is RO 15000

3] Accrued (outstanding) telephone expense is RO 250

4] Service revenue earned but not yet collected are RO 2000