Question 4 (15 marks)

Bulls Ltd began operations on 1 July 2015. The adjusted trial balance on 30 June 2016 are shown below:

Bulls Ltd Adjusted Trial Balance as at 30 June 2016
Account names	Dr	Cr
Cash	22,000
Prepaid Insurance	8,800
Supplies	9,600
Land	100,000
Motor Vehicles	580,000
Accumulated Depreciation Motor Vehicles		7,200
Equipment	134,400
Accumulated Depreciation Equipment		6,000
Accounts Payable		37,600
Rent Rev Recd in Advance		16,800
Salaries Payable		2,400
Interest Payable		8,400
Loan Payable		280,000
Share Capital		200,000
Retained Earnings		280,000
Interest Revenue		85,600
Depreciation Expense	17,200
Insurance Expense	3,600
Interest Expense	8,400
Salaries Expense	34,400
Supplies Expense	5,600
Total	$924,000	$924,000

Required:

1. Prepare an income statement and a calculation of retained earnings for the 12 month ended 30 June 2016. (5 marks)
2. Prepare a statement of financial position as at 30 June 2016. (10 marks)