Section D Question 1 J. Brighl drew up thc following trial balanee as a 30 Scplember 2008. You are to draft an Income Statement for the ycar to 30 Scptember 2008 and a Balance Sheet as at that date Dr (5) Cr (S) 5,000 25,955 Loan from P. Parkin Capital Drawings Cash bank Cash a hand Dcblors Credilors Stock 30 September 2007 Molor Van Office Hquipmcnu Provision for Deprccialion mor van Provision for Deprecialion: of equipmct Sales Purchascs Relurn Inwards Carriage Inwards Retrn Outwards Cariage Oulwards Rent Reccived Molor xpenscs Rent and rales Telephone Sala Insurancc Office Expcnscs Sundry Hxpenses 8.420 13,115 295 12,300 9,370 23,910 6,000 8,000 1,900 1,750 130,900 92,100 550 215 307 309 10,000 1.630 2.970 405 12.810 492 1.377 284 185.182 185.182 Notes: (a) Prepaid expenses: insurancc, S105 (h) Hxpenss owing: rent, $300; elephone $85 (c) Rent reccived include $2,000 for the year 2009 (d) The owner estimates Iha! 2% or deblors will be bad and a provision is lo be sel up lor Ihese. (ej Stock s al 30 Seplcmber 2008 is valucd al $27,475 ) Depreciate motor van al 20% reducing balance, o nice cquipmen1 al 10% on cost