The following account balances for the year ended 30th June 2013, relate to Endeavour Enterprises.
Wages and salaries .............................................$ 88 000
Debtors ...........................................................$ 45 000
Drawings .........................................................$ 21 000
Other operating expenses ......................................$ 4 000
Rent expense ....................................................$ 14 000
Computer operating expenses................................. 7 100
Interest on loan ..................................................$ 2 000
Loan from bank (payable 30 October 2015) ................$ 50 000
Inventory on hand (at cost) ....................................$ 23 000
Equipment (cost) ................................................$ 40 000
Depreciation - equipment .....................................$ 5 000
Accumulated depreciation - equipment .....................$ 10 000
Capital - 1 July 2012 ............................................$ 37 800
Bank ..............................................................$ 52 000
Sales ..............................................................$280 000
Cost of sales .....................................................$ 75 000
Creditors .........................................................$ 1 800
Additional information at 30 June 2013:
• Wages and salaries of $88 000 include an amount of $2500 prepaid to employee's for July 2013.
• Rent expense of $14 000 does not include an amount of $1000 owing as at 30 June 2013.
• Sales of $280 000 include $5000 which is an advance payment for a job which had not been started on 30 June 2013.
REQUIRED:
Prepare an income statement for Endeavour Enterprises for the year ending 30 June 2013 using the accrual approach.