QUESTION 5 The following trial balance, adjustments and additional information were extracted from the accounting records of Willow Enterprises on 28 February 2019, the end of the financial year, REQUIRED Prepare the Statement of Comprehensive Income of Willow Enterprises for the year ended 28 February 2019. Use the following format as a guide: Sales Cost of sales Gross profit Other operating income Gross operating income Operating expenses Operating profit Interest income Interest expense Net profit for the year profi for the year INFORMATION PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2019 Debit (R) Credit (R) 1 296 560 31 040 540 000 300 000 120 000 70 000 16 000 250 000 271 000 310 000 9000 137 000 148 380 125 000 1 563 000 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: ROM Bank (8%) Trading inventory Debtors control Provision for bad debts Bank Creditors control Loan: Tern Bank (12%) 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 Stationery Interest on loan Water and electricity Insurance Telephone os Scanned with CamScanner 900 000 50 000 218 600 8 700 39 000 56 500 10 000 18 000 3 100 4 700 14 000 21 500 20 200 5 500 6 500 3 281 640 3 281 640 Adjustments and additional information 1. Physical stocktaking on 28 February 2019 revealed the following inventories on hand: Trading inventory R260 000 Stationery R1 000 2. Municipal rates amounted to R48 000 for the period 01 July 2017 to 30 June 2018 and R54 000 for the period 01 July 2018 to 30 June 2019. Make the necessary adjustment. 3. Rent has been received up to 31 March 2019. 4. Provide for the outstanding interest on fixed deposit. The fixed deposit account was opened on 01 March 2018 and it matures on 31 May 2019. 5. The water and electricity account for February 2019, R1 200, was due to be settled on 02 March 2019. 6. Provide for outstanding interest on loan for February 2019. 7. Write off the account of a debtor, J. Barry, who owed R5 000. 8. Increase the provision for bad debts by R6 000. J 9. The insurance account includes a premium of R1 800 that was paid for the period 01 September 2018 to 31 August 2019. 10. Provide for depreciation as follows: 10.1 On vehicles at 20% per annum on the diminishing balance. 10.2 On equipment, R12 000. Scanned with CS CamScanner QUESTION 5 The following trial balance, adjustments and additional information were extracted from the accounting records of Willow Enterprises on 28 February 2019, the end of the financial year, REQUIRED Prepare the Statement of Comprehensive Income of Willow Enterprises for the year ended 28 February 2019. Use the following format as a guide: Sales Cost of sales Gross profit Other operating income Gross operating income Operating expenses Operating profit Interest income Interest expense Net profit for the year profi for the year INFORMATION PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2019 Debit (R) Credit (R) 1 296 560 31 040 540 000 300 000 120 000 70 000 16 000 250 000 271 000 310 000 9000 137 000 148 380 125 000 1 563 000 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: ROM Bank (8%) Trading inventory Debtors control Provision for bad debts Bank Creditors control Loan: Tern Bank (12%) 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 Stationery Interest on loan Water and electricity Insurance Telephone os Scanned with CamScanner 900 000 50 000 218 600 8 700 39 000 56 500 10 000 18 000 3 100 4 700 14 000 21 500 20 200 5 500 6 500 3 281 640 3 281 640 Adjustments and additional information 1. Physical stocktaking on 28 February 2019 revealed the following inventories on hand: Trading inventory R260 000 Stationery R1 000 2. Municipal rates amounted to R48 000 for the period 01 July 2017 to 30 June 2018 and R54 000 for the period 01 July 2018 to 30 June 2019. Make the necessary adjustment. 3. Rent has been received up to 31 March 2019. 4. Provide for the outstanding interest on fixed deposit. The fixed deposit account was opened on 01 March 2018 and it matures on 31 May 2019. 5. The water and electricity account for February 2019, R1 200, was due to be settled on 02 March 2019. 6. Provide for outstanding interest on loan for February 2019. 7. Write off the account of a debtor, J. Barry, who owed R5 000. 8. Increase the provision for bad debts by R6 000. J 9. The insurance account includes a premium of R1 800 that was paid for the period 01 September 2018 to 31 August 2019. 10. Provide for depreciation as follows: 10.1 On vehicles at 20% per annum on the diminishing balance. 10.2 On equipment, R12 000. Scanned with CS CamScanner