Question 2

The following is a list of balances from the ledger of Senior Peter after trading for the year ended 30 June 2013.

Land and Buildings	$ 783,000
Motor Vehicles	45,000
Plant & Machinery	194,000
Bank Overdraft	65,400
Office Furniture and Equipment	24,600
Accounts Receivable	70,000
Accumulated Depreciation Plant & Machinery	10,000
Accumulated Depreciation Office Furniture and Equipment	1,800
Accumulated Depreciation - Motor Vehicle	2,000
Sales	1,110,800
Inventory 30th June 2013	36,000
Depreciation	2,800
Cost of Goods Sold	921,000
Mortgage	168,000
Bad Debts Recovered	1,000
Salaries Office Staff	30,000
Accounts Payable	40,000
GST Collected	29,600
Capital	768,420
Insurance	1,400
Advertising	5,000
Office Expenses	11,400
Long Service Leave Expense	800
Bad Debts	1,420
Drawings	18,000
Salaries Sales Staff	54,000
Accrued Income	800
Prepaid Expenses	1,500
Provision for Long Service Leave	2,500
Rent Income	1,200

Note the Perpetual Inventory System is used.

Required:

a) Prepare a Classified Income Statement for the year ended 30 June 2013. (15 marks)

b) Prepare a Classified Balance Sheet as at 30 June 2013. (15 marks)