The following trial balance was extracted from the books of Piccolo at 31 May 2004.

Further information 

1. Stock at 31 May 2004: $42 000. 

2. Freehold land and buildings at cost is made up as follows: land $20 000; buildings $80 000. 

3. Freehold buildings are depreciated at 4% per annum on the straight-line basis. 

4. Plant and machinery are depreciated at 25% per annum on the reducing-balance basis. 

5. At 31 May 2004, $1800 was owing for heating and lighting. $6000 of the cost of advertising related to the year beginning I June 2004. 

6. In the year ended 31 May 2004, Piccolo had taken stock costing $4000 for his personal use. No entry had been made in the books for this. 

Required 

(a) Prepare Piccolo's Profit and Loss Account for the year ended 31 May 2004. 

(b) Prepare the Balance Sheet at 31 May 2004.

Transcribed Image Text:

Freehold Land and Buildings at cost Ask Provision for Depreciation of Freehold Buildings Plant and Machinery at cost Provision for Depreciation of Plant and Machinery Trade debtors Trade creditors Bank Sales Purchases Stock Wages Heating and Lighting Repairs to Plant and Machinery Advertising Drawings Capital $ EventLauriw 100 000 During 76 000 disen poupled-quraciosa The mot EUDS poderosos0 17 29aior trolise ST 14 000 Ballas + 5 500 190 000 30 000 56 000 17 600 5 100 7.000 27 100 $ 40 000 32 000 TRUS QUE 6 300 aw 300 000 150 000 528 300 528 300