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QUESTION 1 A As at May 3 1 , 2 0 2 4 Marko Consultancy & Engineering Services Limited had been in operation for seven

QUESTION 1A
As at May 31,2024 Marko Consultancy & Engineering Services Limited had been in operation for seven (7) years. Marko rents three (3) conmercial units at the Sunchine Village lndustrial Complex in Negril for $20,000 per unit per month. Since August 1,2023 he sub-lets one of the units to his primary sub-contractor, Rambo Built Franses for $25,000 per month.
Below is an extract of Marko's trial balance for the year ended May 31,2024.
\table[[DETAILS,DR,CR],[,S,3],[Wages and Salaries,3,470,000,],[Trade Payables,,260.000],[Rent Received,,340,500],[Provision for Bad Debts,,188,000],[Maintenance,434,500,],[Insurance,127,000,],[Cash,40.000,],[Capital,,14,000,000],[Lisht and Heavy Duty Vehicles.,15.440.000,],[Provision for Depreciation on Light and Heavy Duaty Vehicles,,3,309,000],[Computers & Other Devices,4,300,000,],[Provision for Depreciation on Compaters & Other Devices,,1,497,000],[Returns,178,000,192.000],[Purchases,5,860,000,],[Law Suit Procecds,,1,425,000],[Electricity Charges,257,000,],[\table[[Drawings]],1,430,000,],[Discounts,156000,121,000],[Bad Debts,250,000,],[Trade Receivables,1.389.000,],[Sales,,8,350,000],[\table[[Rent Expense]],540.000,],[Inventory at 1 April 2023,920,600,],[Commission Received,,25,600],[Basiness Expansion Loan,,8,500,000],[Bank,,365,000],[Furniture, Fixtures and Fittings,5,420,000,],[Provision for Depreciation on Furniture, Fixtures and Fittings,,1,639,000],[,40.312.100,40.312.100]]
Notes
At the end of the financial year it was noted that $48,000 in merchandise was missing. Marko advised he had taken them.
Maimenance is the cost of a two-year service contract with Sure Calibration Plc. June 2023 to May 2024 is the first year for the service contract.
Stock at year end was valued at $208,000 but goods costing $100,000(a material amount) were erroncously not included in the count.
Wages and Salaries prepaid is $60,000.
The depreciation rate for all assets is 20%
All assets are depreciated using the redacing balance method expect Computers and Other Devices.
Commission is prepaid by $5,600.
The provision for bad debts is to be adjusted to 12.5% of trade receivables.
2
REOUIRED:
For the period under review, prepare:
a. The Statement of Profit or Loss
[33 marlas]
b. The Statement of Financial Position
[23 marlas]
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