The following list of balances is from the ledger of G. Lea, a sole trader as at March 31, 2006. Purchases Sales Stock April 1, 2005 Capital April 1, 2005 Bank Overdraft Cash Carriage Inwards Discount Allowed Discount Received Return Inwards Return Outwards Carriage Outwards Rent and Insurance Provision for doubtful debts Office Equipment Delivery Vans Debtors Creditors Bad Debt Written off Wages and Salaries Drawings General Office Provision for depreciation: Office Equipment Delivery Vans $224,000 $419,700 $51,600 $72,000 $43,500 $900 $4,600 $14,400 $9,300 $8,100 $5,700 $21,600 $17,400 $6,600 $20,000 ID $27,000 $119,100 $61,200 $400 $89,000 $28,800 $4,500 $8,000 $5,400 You are required to: 1. Prepare a trial balance from the information provided marks) 2. Using the following additional information: a. Stock at March 31, 2006, was valued at $42,900 b. Wages and salaries accrued $2,100 and office expenses owing $200 at March 31, 2006 c. Rent Prepaid was $1,800 d. Provision for doubtful debts to be adjusted to $5,100 (5 e. Provide for depreciation on the delivery vans at 20% per annum using the reducing balance method f. Provide for depreciation on the office equipment at 20% per annum using the straight-line method iii. Prepare an Income Statement for G. Lea for the year ended March 31, 2006 (15 marks) iv. Prepare the statement of financial position as at March 31, 2006 (20 marks) 3. Explain how revenue affects the statement of financial position to G. Lea. (5 marks) 4. From the information gathered in the Income Statement and Statement of

The following list of balances is from the ledger of Mr. Carty as at February 28, 2018. Carriage Outwards $4,562 Drawings $18,440 Carriage Inwards $11,830 Discount Allowed \$2,306 Discount Received \$1,750 Purchases $135,680 Return Inwards \$5,624 Rents, rates \& insurance $25,973 Heating \& Lighting $11,010 Postage, stationery \& telephone $2,410 Debtor $24,500 Fixtures \& Fittings- at cost $120,740 Provision for depreciation on fixtures \& fittings- as at Feb. 28, 2018, $63,020 Depreciation $12,074 Advertising $5,980 Salaries \& wages $38,521 Bad debt $2,008 Cash $534 Return Outwards $13,407 Provision for doubtful debt $512 Bank $4,440 Capital $83,887 Sales $259,870 Creditor $19,840 Stock as at March 1, 2017, \$15,654 You are required to: 1. Prepare a trial balance from the information provided (5 marks) 2. Using the following additional information: a. Stock at the close of business was valued at $17,750 b. Insurances have been prepaid by $1,120 c. Heating and lighting are accrued by $1,360 d. The provision for doubtful debt is to be adjusted so that it is 3% of debtors e. Prepaid rates $5,435 i. Prepare an Income Statement for Mr. Carty for the year ended Feb. 28,2018 (20 marks) ii. Prepare the statement of financial position as at Feb. 28, 2018 (15 marks) 3. Explain the importance of the Income Statement and Statement of Financial position to Mr. Carty. (5 marks) 4. From the information gathered in the Income Statement and Statement of Financial Position, provide Mr. Carty with an analysis of his business performance