The accounting records of Kangaroo Sports and Social Club are in a serious mess. The members provided you with the following information to help you prepare the financial statements for the year ended 30 June 2022.

Summarised balance sheet as of 30 June 2022.

DR (N$)

Half share in motorized roller 600

New sports equipment unsold 1,000

Used sports equipment at a valuation of 700

Rent (2 months) 200

Subscription – 2021 60

Café inventories 800

Cash and bank 1,210

Total 4,570

CR (N$)

Insurance (3 months 150

Subscriptions – 2022 120

Life subscriptions 1,400

1,670

Accumulated fund 2,900

Total 4,570

Receipts in the years to 30 June 2022 N$

Subscriptions

2021 40

2022 1,100

2023 80

Life subscriptions 200

From the disposal of new sports equipment 900

From disposal of used sports equipment 14

Café takings 4,660

Total 6,994

Payments in the year to 30 June 2022 N$

Rent (01 July 2021 – 30 June 2022) 1,200

Insurance (01 July 2021 – 31 December 2022) 900

Supplies for sports equipment 1,000

Café supplies 1,900

Wages of café manager 2,000

Repairing motorized roller 450

Total 7,450

Additional information:

a) Ownership and all expenses of the motorized roller are agreed to be shared equally with Kangaroo Sports and Social Club and Baku-Baku Sports Club. Baku-Baku Sports Club occupies the nearby site.

b) The roller cost N$2,000 on 01 January 2019 and it has 10 years life span.

c) Life subscriptions were brought into income equally over 10 years. This started 5 years ago in 2016. Since the scheme began, the cost of N$200 per person has been constant.

Prior to 30 June, 2021 ten life subscriptions had been received.

d) Four more annual subscriptions of N$20 each had been promised relating to 2022, but not yet received. Annual subscriptions promised but unpaid are carried forward for a maximum of 12 months.

e) New sports equipment is sold to members at cost plus 50%. Used equipment is sold off to members at book valuation. Half the sports equipment bought in the year has been used within the club, and half made available for sale. The used equipment at valuation figure in the 30 June 2022 balance sheet is to remain at N$700 and transfer from purchases N$500.

f) Closing café inventories are N$850, closing inventory on new sports equipment N$900, subscription owing N$80, life subscriptions N$1,380, Prepaid expenses N$350, and N$80 is owed to café suppliers on 30 June 2022.

Required:

1. Calculate the profit on café operations and the profit on the sale of new sports equipment. 

2. Calculate subscription income, life subscriptions, and Used sports equipment for 2022. 

3. Prepare an income and expenditure statement for the year to 30 June 2022. 

4. Prepare a balance sheet as of 30 June 2022.