(a) Using the information provided in question C12.1, prepare a spreadsheet containing a trial balance, adjustment and resulting figures for income statement (profit and loss account) and statement of financial position (balance sheet) items. (Table 12.7 provides a pattern to follow.)

(b) Present the income statement (profit and loss account) for the year and the statement of financial position (balance sheet) at the end of the year in an informative and useful manner.

Table 12.7

Data from C12.1

Set out below is a summary of the accounting records of Titan Ltd at 31 December Year 1:

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Trial balance of M. Carter at the end of May, before month-end adjustments Ledger account title Trial balance L3 Buildings L4 Equipment L5 Inventory (stock) of goods L11 R. Welsby L1 Cash Accruals R. Busby Ownership interest L6 L2 Subtotal Difference: profit of the month L10 Sales L9 Cost of goods sold L7 Electricity Gas L8 Wages L12 Depreciation Subtotal Difference: profit of the month Total of each column Dr 30,000 5,750 8,000 nil 6,400 50,150 3,500 100 2,000 250 5,850 56,000 Cr nil 49,000 49,000 7,000 7,000 56,000 Adjustments Dr 500 (a) 80 (b) 580 Cr Expense 500 (a) 80 (b) Income (profit) statement 580 4,000 100 80 2,000 250 6,430 570 7,000 Revenue 7,000 7,000 7,000 Statement of financial position A 30,000 5,750 7,500 6,400 49,650 L + Ol 80 49,000 49,080 570 49,650 ate V49,650 Go to Settings to activ