Question 3

First Med Ltd. has extracted the following trial balance from his books for the year ended 30 June 2021:

	Dr	Cr
Capital	240,000	458,038
Premises	75,000.
Equipment		328,931
Sales	194,360
Purchases Inventory (1 July 2020)	126,377
Interest income		1,680
Rates	48,000
Wages	32,112
Electricity	29,416
Drawings	1,250
Premises - Provision for depreciation (1 July 2020)		14,000
Equipment Provision for depreciation (1 July 2020		8,410
Bank loan ( due in 2028)		2.981
Sundry expenses	13,000
Trade receivables	241600
Trade payables		187420
Cash	345
	1001460	1001460

Additional information:

(1) Inventory on 30 June 2021 was $149,605.

(2) The following depreciation rates are used:

Premises 2% on cost

Equipment 20% reducing balance

(3) Interest income includes a receipt of $400 relating to the period 1 June 2021 to 30 September 2021. (4) The rates figure includes a payment of $12,600 relating to the period 1 May 2021 to 31 July 2021.

Required.

(a) Prepare an Income Statement for the year ended 30 June 2021.

(b) Prepare a Balance Sheet at 30 June 2021.