On December 31, 2016 the following Trial Balance was extracted from the books of Jona Willis.

Details/Accounts	Dr	Cr
Capital		100,900
Acc. Prov. for Depreciation: Fixtures and Fittings Jan. 2016		3,000
Acc. Prov. for Depreciation: Motor Vehicle Jan. 2016		3,300
Accounts payable		27,000
Commission Received		3,600
Loan		12,000
Sales		41,000
Purchases	11,600
Office Expenses	12,400
Miscellaneous Expenses	740
Salary and Wages	7,800
Carriage inwards	100
Telephone Expense	240
Rent expense	2,100
Electricity Expense	1,140
Discounts allowed	160
Return Inwards	400
Stock, January 1, 2016	3,600
Accounts receivable	39,000
Cash at Bank	23,400
Drawings	8,920
Land	39,200
Fixtures and Fittings	17,000
Motor Vehicle	23,000
	190,800	190,800

 

The following additional information has been made available:

1. Electricity expense accrued $1000.
2. Rent expense prepaid $800.
3. Depreciation is to be provided for as follows: Motor Vehicle at 15% of cost; Fixtures and Fittings at 10% reducing balance method.
4. Stock at December 31, 2016 was valued at $2,800.

    Required

Prepare an income statement

Answer rating: 100% (QA)

Depreciation Expense Motor Vehicle 15 of 23000 Cost 3450 Fixtures and Fittings 10 reducing balance o... View the full answer