Statement Preparation

Andy Anders on runs Andy's Supplies Ltd, as mall plumbing supplies business. He asks you to assist in preparing her final accounts.He has supplied you with the following trial balance for the period ending 31 March 2020.

After checking Andy's accounts you find the following adjustments to be made:

A delivery van was purchased at the start of the year for $50,000. Depreciation for the year has not been calculated. Use the straight-line method, 10 years of useful life, and $5,000 scrap value.

An $8,000 bill from the radio station for advertising was received on the 30thof March and has not been entered into the trial balance. The bill has not been paid.

On 29 March, a customer made a deposit of $2,000 for goods that had not been ordered or delivered yet. This deposit has been included in Sales Revenue.

Inventory stock take at balance date=$54,000.

1 For the first three adjustments above, describe the adjustment to the accounting records that must be made.

2 Calculate the Cost of Goods Sold for the year.

3 From your calculations above, prepare:

Statement of Financial Performance for the year ended

Statement of Financial Position

Statement of Equity.

Use the templates provided. This trial balance template has been provided for you to make the adjustments on.