question archive The following list of balances is from the ledger of Mrs
The following list of balances is from the ledger of Mrs
Subject:AccountingPrice: Bought3
The following list of balances is from the ledger of Mrs. Graver a sole proprietor as at April 30,
2020.
Purchases $61,420
Sales $127,245
Stock May 1, 2017 $7,940
Capital May 1, 2017 $25,200
Bank overdraft $2,490
Cash $140
Discount Allowed $2,480
Discount Received $62
Returns inwards $3,486
Returns outwards $1,356
Carriage outwards $3,210
Rent and insurance $8,870
Provision for doubtful debts $630
Fixtures and fittings $1,900
Van $5,600
Debtors $12,418
Creditors $11,400
Drawings $21,400
Wages and salaries $39,200
General office expenses $319
You are required to:
1. Create trial balance from the information provided
2. Using the following additional information:
a. Stock April 30, 2018 $6,805.
b. Wages and salaries accrued at April 30, 2018 $3,500; Office expenses owing $16.
c. Rent prepaid April 30, 2018 $600.
d. Increase the provision for doubtful debts by $110.
e. Provide for depreciation as follows: Fixtures and fittings $190; Van $1,400.
i. Prepare an Income Statement for Mrs. Graver for the year ended April 30, 2018
ii. Prepare the statement of financial position as at April 30, 2018 (20 marks)
3. Explain the importance of Income Statement and Statement of Financial position to Mrs.
Graver. Also, from the information gathered from the Income Statement and Statement of
Financial position provide Mrs. Graver with an analysis of his business' performance.
