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Q No.1 FINANCE FOR MANAGERS Q No.1 Following Trial balance and adjustment data is presented by Saleem , a sole- trader at the end of its financial year Dec.31,2012. CREDIT DEBIT 105,000 20,000 132.800 3,000 6,000 2,000 1.000 500 7,000 25,100 200 TITLE OF ACCOUNT CASH A/C RECEIVABLE EQUIPMENT ADVERTISING EXPENSE PREPAID RENT MISCELLANEOUS EXPENSE OFFICE SUPPLIES EXPENSE INTEREST EXPENSE MDS. INVENTORY COST OF GOODS SOLD CARRIAGE OUTWARD SALES RETURN SALARIES EXPENSE SALES REVENUE COMMISSION UNEARNED INTEREST INOCME COMMISSION INCOME A/C PAYABLE CAPITAL-SALEEM NOTE PAYABEL BANK OVERDRAFT LONG-TERM LOAN TOTAL 900 8,000 240,000 800 400 2,500 5,500 39,800 5,000 7,500 10,000 311,500 311,500 ADJUSTMENT DATA ON DEC.31,2002: Depreciation on equipment 2% Tax rate is applied 20% INSTRUCTION 1. MULTIPLE STEP INCOME STATEMENT showing EBIT and EAT 2. BALANCE SHEET in classified form