QUESTION 5 FINANCIAL STATEMENTS (20 MARKS) Menton Enterprises PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2016 Debit (R) The trial balance, adjustments, and additional information given below were extracted from the accounting records of Menton Enterprises on 29 February 2016, the end of the financial year. REQUIRED Use the trial balance, adjustments, and additional information to prepare the Statement of Comprehensive Income of Menton Enterprises for the year ended 29 February 2016 Use the following format: Credit (R) 660 500 20 800 269 100 140 000 55 000 15 000 Statement of Comprehensive Income format Sales Cost of sales Gross profit Other operating income 150 000 150 000 130 000 68 500 Balance sheet accounts section Capital Drawings Land and buildings Vehicles at cost Equipment at cost Accumulated depreciation on vehicles Accumulated depreciation on equipment Fixed deposit: Gogo Bank (6% p.a.) Trading inventory Debtors control Provision for bad debts Bank Creditors control Loan: Gogo Bank (14%) Nominal accounts section Sales Cost of sales Sales returns Wages and salaries Bank charges Rent income Municipal rates Interest on fixed deposit Bad debts Discount allowed Discount received Consumable stores Interest on loan Water and electricity Insurance Telephone RS 12 780 000 Gross operating income Operating expenses 464 000 20 000 112 000 2000 22 000 22 000 9000 8 000 1 500 8 000 7 000 6 000 2000 4000 1640 500 1640 500 Operating profit Interest income Interest expense Net profit for the year Adjustments and additional information Physical stocktaking on 29 February 2016 revealed the following inventories on hand: Trading inventory R148 000 Consumable stores R1 000 Rent has been received up to 31 January 2015. Make the necessary adjustment The bank statement for February 2016 reflected the following that must still be recorded: Bank charges R300 The telephone account for February 2016, R400. has not yet been paid. Municipal rates amount to R2 000 per month. Make the necessary adjustment The insurance account includes an amount of R300 that was paid for the next accounting period. Write off the account of a debtor, K. Minton, who owed R500. The provision for bad debts must be increased to R5 200 The water and electricity account erroneously includes a payment of R600 for the payment of the proprietor's personal water and electricity account. Provide for depreciation as follows: On vehicles at 20% per annum on the diminishing balance On equipment at 10% per annum on cost 10. 10.1 102 APPENDIX 1 Present value of Rl: PVFA (k,n) = 7% 8% 10% END OF PAPER Number 11% 12% 13% 1896 1995 Periods 0.9901 90409709 09615 0.9524 094340916 09259 0.9174 090099 90NNSOO 3772 0 1696 1621 0.85470 8475 08403083330 000 0.9803 0.96120.9426 0.924600N ONVOOO7O 7304170064 0.116 0.79720.73076950756107432 0,7105071820,2062099040,6600 09706 09423 09151 0900 863 03396 011630 793 0.772207513 0.7912 0.1 0.6931 06750 0.657506407 0.6244 06096 0.59340 5787 0.5120 0.9610 0.9238 0.888S 083480.6227 0.79210702907350070 0 06570761550.6133059210.57180.55230.533705158 0.498704823 0.4096 109515 09057 0.6626 019 0.735 0.7473 071 060,6499 000 0.59350 5674 0.5420 51940.4972 0476104561 0437104190040190.3277 00420 0888008375 0.7903 0.7462 0.7050 0.666106102 0.596305645 0.5146306604N0304556 0.4323041040.398037040.3521 0.3349 0.2621 0.9327 0.87060.13 0.759907107 0.665106227 5 0.5470132 0. 412 0.45230.4251039960.37590253803332011190.2959 0.2791 0.2097 09235 0853507894 0.73070 676 062745200 5401.5019046640419040100376201506032690 3050 0.2848 076600.24870.232601678 09143 0.8368 0.7664 0.7026 06446 0.5919 0.54 O 300204664 042410 1909 1660.333290 3075 0.2843 0 26300 2434 07755 0.20900 1998 01342 0.9053 0.82030.7441 0.67560. 61390CCOO PERIOONIPROPDO W 02472202267 0.208001910 .175601615 0.1074 110.8963 0.8043 0.7224 0.64960.5647 0.5200,475109 3750505 0 50 .2002022660 .2149 0.19540 .1778 0.1619 0.1476 0.1346 0.0859 10.8874 0.7885 0.7014 067460.556 0.49700 4440 W2103555 6 0 2NSN 02567 0.23070 20760 1869 0.16350 1520 0.13720 12400112200667 0.8787 0.7730 0.6810 0.6006 0.5303 0.468041900670202 0 25 0 204201210.1625 0.1452 0.1299 0.11630 .10420 .0935 0.0550 14 08700 0.75790.6611 057750.SOSI 44230 370 14051 0.299202611021200 20460 IND701597014130.1252 01110 0.09850.0876 0.077900440 0.8613 0.7430 0.6419 0.5553 0. 410 0.41730 . 36 1 5202705 0 0 2090 20.1599014010 .1229 0.1079 0.0949 0.0835 0.0736 0.0649 0,0352 16 0,8528 0.72840.6232 $3390458103916 037 09902519 02176 O INNO 161101415 0.1229010690.0030 0.0811 0.00 0.06180 0541 00281 17 0.8464 0.7142 0.6050 0.51340 .4363 027140 .3166 OFF01O O 0.1696 0.1456 0.1252 .100.092962020 .0693 OLOSOO 0.05200 .0451 0.0225 180.8360 0.7002 0.58740916 10.415011001029990110210.21200 1700 1528 0.13 0.1108 00 0.0NON DOL 0.0592 OSON 0.04370376 0.01 RO 0.8277 0.6864 0.5705 6.4146 0.39570308 0.2765021170. 1 0 1650 0 160.09N1 29 0.003 0.0596 0.0506 0.0431 0.0367 0.0313 0.0146 2008195 067300.5537 0 4564 0.3769 O N 0.2514 0214501710146012400 1017006 010723006110051400433 0.0365 0.030800261 0.0115 25 0.7798 0.609504776 37510 2941 02110011421400 1160009230.0736000047100373003040094500197 00160001290105 0.0038 30 0.7419 0.5521 0.4120 OB0.2014 1741 01314 T 0 0754053037 0 0256 OTO196 0151116 0.0090 0.000 0.0054 0.0042 0.0012 0.6717 0.452903066 020301420 1 00668 OOO OSOBI 154 000 0.00 0.00 0.0037 026 001900012 0.0010 0.0001 50 0.6080 03715 0.2281 0.1407 0.0172 0014900119 0.0213 0.01 OORS 005400035 0.002200140009 .0006 .0004 0.000300002 600.5504 03050.16700051 0.0515 0103 0.0173 0900057 0 019 .002 0 .0002 OCOR . 1 . . . 13