John Timms is the sole owner of Sunshine Wholesale Traders, a company which buys fruit from farmers and sells it to supermarkets. All goods are collected from farms and delivered to supermarkets on the same day, so no inventories (stocks) of fruit are held. The accounting records of Sunshine Traders at 30 June Year 2, relating to the year then ended, have been summarized by John Timms as follows:
................................................................................................ £
Fleet of delivery vehicles, after deducting depreciation ...................... 35,880
Furniture and fittings, after deducting depreciation ........................... 18,800
Trade receivables ................................................................... 34,000
Bank deposit ........................................................................ 19,000
Trade payables (creditors) ......................................................... 8,300
Sales ............................................................................... 294,500
Cost of goods sold ............................................................... 188,520
Wages and salaries ................................................................ 46,000
Transport costs ..................................................................... 14,200
Administration costs ................................................................ 1,300
Depreciation of vehicles, furniture and fittings ................................. 1,100
Required
(a) Identify each item in the accounting records as an asset, a liability, or ownership interest (identifying separately the expenses and revenues which contribute to the change in the ownership interest).
(b) Prepare a statement of financial position (balance sheet) at 30 June Year 2.
(c) Prepare an income statement (profit and loss statement) for the year ended 30 June Year 2?