LooLoo is the owner of Bolster Gifts Shop. The following trial balance was extracted from her...

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LooLoo is the owner of Bolster Gifts Shop. The following trial balance was extracted from her books on 31 December 2022. Sales revenue Sales returns Trade receivables Trade payables General expenses Carriage outwards Interest on loan Wages and salaries Commission income Discount received Loan from DBS Bank Motor vehicles at cost Accumulated depreciation - motor vehicles Fixtures and fittings at cost Accumulated depreciation - fixtures and fittings Allowance for impairment on trade receivables Cash at bank (Cr balance) Drawings Capital, 1 January 2014 Cost of sales Inventory $ 1,106,000 5,000 92,000 61,600 16,800 1,160 2,200 163,840 860 800 60,000 120,000 12,000 65,600 9,840 13,400 27,200 62,000 57,700 756,000 64,800 Additional information: 1. LooLoo took goods at cost, $6,000, from the business for her private use. No entry was made in the books. 2. General expenses, $1,500, were outstanding at 31 December 2022. 3. Carriage outwards, $360, had been paid in advance as at 31 December 2022. 4. Amount of $620 from customer was irrecoverable and the amount is to be written off. 5. $10,600 due from Mary, a trade receivable, is likely to be uncollectable. 6. Commission income of $460 was not received yet. 7. Depreciation policy: Motor vehicles: 10% per annum on net book value Fixtures and fittings: 15% per annum on cost REQUIRED (a) Prepare the income statement for the year ended 31 December 2022. (25%) (b) Prepare the balance sheet as at 31 December 2022. (34%) (Total scores = 59%. Learning Outcome L04.) LooLoo is the owner of Bolster Gifts Shop. The following trial balance was extracted from her books on 31 December 2022. Sales revenue Sales returns Trade receivables Trade payables General expenses Carriage outwards Interest on loan Wages and salaries Commission income Discount received Loan from DBS Bank Motor vehicles at cost Accumulated depreciation - motor vehicles Fixtures and fittings at cost Accumulated depreciation - fixtures and fittings Allowance for impairment on trade receivables Cash at bank (Cr balance) Drawings Capital, 1 January 2014 Cost of sales Inventory $ 1,106,000 5,000 92,000 61,600 16,800 1,160 2,200 163,840 860 800 60,000 120,000 12,000 65,600 9,840 13,400 27,200 62,000 57,700 756,000 64,800 Additional information: 1. LooLoo took goods at cost, $6,000, from the business for her private use. No entry was made in the books. 2. General expenses, $1,500, were outstanding at 31 December 2022. 3. Carriage outwards, $360, had been paid in advance as at 31 December 2022. 4. Amount of $620 from customer was irrecoverable and the amount is to be written off. 5. $10,600 due from Mary, a trade receivable, is likely to be uncollectable. 6. Commission income of $460 was not received yet. 7. Depreciation policy: Motor vehicles: 10% per annum on net book value Fixtures and fittings: 15% per annum on cost REQUIRED (a) Prepare the income statement for the year ended 31 December 2022. (25%) (b) Prepare the balance sheet as at 31 December 2022. (34%) (Total scores = 59%. Learning Outcome L04.)

Answer rating: 100% (QA)

a Income Statement for the year ended 31 December 2022 Sales Revenue 1106000 Less Sales Returns 5000 ... View the full answer