The trial balance of Boots business as at December 31st 2020 is as follows: Cash Trade...

 

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The trial balance of Boots business as at December 31st 2020 is as follows: Cash Trade Receivable 300,000 450,000 Inventory 1,000,000 Land 1,459,900 Building 1,400,000 Equipment 900,000 Trade payable 900,000 Cost of goods sold 500,000 General Expense 340,000 Rent 103,000 Sales Revenue 3,352,900 Capital 100,000 Drawings 120,000 Retained Profit 1,980,000 Total 6,452,900 6,452,900 Required: 1. Prepare an income statement for the year ended 31st December 2020. 2. Briefly explain the main differences between a statement of financial position and an income statement? The trial balance of Boots business as at December 31st 2020 is as follows: Cash Trade Receivable 300,000 450,000 Inventory 1,000,000 Land 1,459,900 Building 1,400,000 Equipment 900,000 Trade payable 900,000 Cost of goods sold 500,000 General Expense 340,000 Rent 103,000 Sales Revenue 3,352,900 Capital 100,000 Drawings 120,000 Retained Profit 1,980,000 Total 6,452,900 6,452,900 Required: 1. Prepare an income statement for the year ended 31st December 2020. 2. Briefly explain the main differences between a statement of financial position and an income statement?

Answer rating: 100% (QA)

Answer Income Statement for the Year Ended December 31 2020 Revenue Sales Revenue 3352900 Expenses C... View the full answer