The trial balance of Victoria Ltd at 30 June 2020 is shown below. There was no movement in share capital for the year. The adjustments that need to be made are:

1. record income tax expense of $7500 

2. transfer $1000 to general reserve 

3. accrued expenses: sales staff’s salary $650; office salaries $270; interest on bank loan $20 

4. write off preliminary expenses $3000 

5. rent prepaid $300 

6. record depreciation: motor vehicles 10% on cost; office furniture 20% on cost; buildings 5%

7. recommend a dividend of 20c per share.

Required

Prepare an income statement and a statement of changes in equity for the year ended 30 June 2020 and a balance sheet for Victoria Ltd as at 30 June 2020.

Transcribed Image Text:

VICTORIA LTD Trial Balance as at 30 June 2020 Share capital (50 000 shares issued at $1 called to 80c) Retained earnings 1/7/19 General reserve Asset replacement reserve Sales Sales returns and allowances Cost of sales Freight inwards Debit Credit $ 40.000 5000 4700 10000 150 000 500 SA $ 93 280 600