Tiana Daniles is the sole owner of T-Square Enterprise located in Spanish Town, St. Catherine. The...

 

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Tiana Daniles is the sole owner of T-Square Enterprise located in Spanish Town, St. Catherine. The business' trial balance on December 2021 was as follows: Trial Balance at 31 December 2021 Accounts payable and receivables Bad debts Bank Loan (repayable March 2022) Capital Carriage Inwards Bank Drawings Motor Vehicle: Cost Provision for depreciation at 1 January 2021 General expenses Insurance Interest on bank loan Inventory at 1 January 2021 Premises: Cost Provision for depreciation at 1 January 2021 Provision for bad debts Purchases & Revenue Dividend received Salaries DR 243,200 9,200 24,800 30,800 284,400 485,000 119,300 63,200 9,000 558,600 3,600,000 4,121,100 CR 294,000 120,000 2,692,400 225,000 144,000 9,500 6,937,200 74,700 948,200 10,496,800 10,496,800 Footnote: A. B. 1. Inventory valued at $492,500 2. Prepaid expenses: General expense $1,200 Insurance $3,300 3. Salaries due but unpaid $28,800 4. Dividend received in advance $2,100 5. Tiana's policy is to maintain the provision for bad debts at 5% of accounts receivable at the year end. 6. Depreciation: Premises - 2% per annum- straight line method Motor Vehicle-20% per annum- reducing balance method Prepare the business Income Statement for the year ended 31 December 2021. (9 marks) Prepare the Balance Sheet as at 31 December 2021. (11 marks) Tiana Daniles is the sole owner of T-Square Enterprise located in Spanish Town, St. Catherine. The business' trial balance on December 2021 was as follows: Trial Balance at 31 December 2021 Accounts payable and receivables Bad debts Bank Loan (repayable March 2022) Capital Carriage Inwards Bank Drawings Motor Vehicle: Cost Provision for depreciation at 1 January 2021 General expenses Insurance Interest on bank loan Inventory at 1 January 2021 Premises: Cost Provision for depreciation at 1 January 2021 Provision for bad debts Purchases & Revenue Dividend received Salaries DR 243,200 9,200 24,800 30,800 284,400 485,000 119,300 63,200 9,000 558,600 3,600,000 4,121,100 CR 294,000 120,000 2,692,400 225,000 144,000 9,500 6,937,200 74,700 948,200 10,496,800 10,496,800 Footnote: A. B. 1. Inventory valued at $492,500 2. Prepaid expenses: General expense $1,200 Insurance $3,300 3. Salaries due but unpaid $28,800 4. Dividend received in advance $2,100 5. Tiana's policy is to maintain the provision for bad debts at 5% of accounts receivable at the year end. 6. Depreciation: Premises - 2% per annum- straight line method Motor Vehicle-20% per annum- reducing balance method Prepare the business Income Statement for the year ended 31 December 2021. (9 marks) Prepare the Balance Sheet as at 31 December 2021. (11 marks)

Answer rating: 100% (QA)

Answer TSQUARE ENTERPRISE Income Statement For the Year Ended December 31 2021 Revenue Sales 6937200 ... View the full answer