Q.5

Given the following trial balance of XYZ Public Limited:

XYZ Public Limited Trial Balance As on Dec. 31, 2020
Account Titles	Dr. ($)	Cr. ($)
Cash	1,000
Accounts Receivable	1,000
Prepaid Rent	1,000
Sales	2,000	100,000
Sales Returns
Inventory (Opening)	2,000
Purchases	50,000
Purchases Returns		1,000
Operating Expenses	10,000
Interest Expenses	100
Tax Expense	500
Accounts Payable		1,500
Bond Payable (in 10 years)		100,000
Note Payable (in 6 months)		2,000
Interest Payable		100
Plant & Equipment	91,000
Land & Building	346,000
Furniture & Fixtures	50,000
Capital Stock		100,000
Retained Earnings		250,000
Total	554,600	554,600

Closing Inventory =$ 3000

Instructions:

1. Identify whether XYZ uses perpetual or periodic inventory system (2)
2. Compute the cost of goods sold for the year ended in Dec. 31, 2020 (3)
3. Prepare income statement for the year ended in Dec. 31, 2020 (5)
4. Prepare statement of retained earnings for the year ended in Dec. 31, 2020 (3)
5. Prepare balance sheet as on Dec. 31, 2020 (7)