REVIEW QUESTIONS 1. Martha Adebuyo owns a retail shop. Her financial year ends on 31 August. Her income statement for the year ended 31 August 2004 is shown below. Some words and figures are missing. In each of the boxes (i) to (vii) enter the missing word(s) or figure. Income statement for the year ended 31 August 2004 $ $ $ 106 000 Revenue (sales) Less Sales returns (i) 100 000 12 000 Less Cost of goods sold Opening (ii) Purchases Less Purchases returns (iii) 4 000 67 000 5 000 Plus Carriage (iv) 72 000 84 000 (v) Less Closing inventory Gross profit Add Rent (vi) 70 000 30 000 6 000 Less Wages Insurance General expenses 14 000 3 000 36 000 (vii) Profit for the year 24 000 12 000 [IGCSE 2004) *2. Piyush is a financial adviser. He provided the following information on 31 October 20-6. $ Commissions earned 72 100 Interest received 2 900 Staff salaries 28 500 Rent 9 400 Postages and telephone expenses 5 700 Light and heat 1 100 Insurance 800 General expenses 3 500 Prepare Piyush's income statement for the year ended 31 October 20-6. *3. Rani owns a retail store. For the year ended 31 December 20-9 she made a gross profit of $35 000. She provided the following information for that year. $ Drawings 17 000 Wages and salaries 23 000 Rent received from subletting 6 000 General expenses 13 500 Loan interest 1 000 Discount allowed 500 Discount received 870 Advertising 680 Property tax 1 240 Motor expenses 2 550 (a) Starting with the gross profit, prepare the profit and loss section of the income statement for the year ended 31 December 20-9. (b) Prepare Rani's capital account as it would appear in her ledger for the ended 31 December 20-9. On 1 January 20-9 her capital year was $46 000