Return to Review Question 7.1 and prepare a statement of financial position as at 31 December 2013.

Review Question 7.1

From the following trial balance of B. Cork, extracted after one year’s trading, prepare an income statement for the year ending 31 December 2012. A statement of financial position is not required.

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Trial balance as at 31 December 2012 Dr Sales Purchases Salaries Motor expenses Rent Insurance General expenses Premises Motor vehicles Accounts receivable Accounts payable Cash at bank Cash in hand Drawings Capital Inventory at 31 December 2012 was 15,600. 120,800 58,600 2,400 1,900 300 170 95,600 17,200 26,800 16,400 600 8,400 349,170 Cr 200,500 17,600 131,070 349,170