Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Retained income 3 1 March 2 0 2 4 8 0 4 7 6 Sales 2 3 6 0 0 0 Purchases 9 3 3
Retained income March Sales Purchases Import duty Salaries Rent Interest General expenses Profit On investigation of the above statement of comprehensive income, you discover the following; The bookkeeper had not journalized the reversing entry for the accrual at March of rent paid in advance of R and sales received in advance of R Both these amounts are related to April All other reversing entries have been processed. Interest represents payments of interest for the year on a loan of R The interest rate is per annum, and there have been no repayments during the year. The inventory per the statement of financial position at March was R which represented speakers valued at R There were speakers on hand at March Of these, were considered worthless. Jack Solutions accounts for inventory on the periodic using the FIFO basis of allocating costs.
The purchases and purchase returns records for the year were as follows;
Purchases
July
units at R each
October
units at R each
January
units at R each
March
units at R each after trade discount
Purchase returns
July
units at R each
March
units at R each
A Chinese supplier entered the market in late March and was selling its speakers at R each. The normal selling price of Jack was R
In March a carton of speakers purchased in March was stolen. Jack is not insured for losses of this nature.
prepare the statement of comprehensive income for the year ended march
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started