QUESTION 2: Financial Statement (40 marks)

Mr Damien Clark owns and manages a retailing business called Universal Adelaide Stores in South Adelaide. In your role as a Graduate Accountant at Bright Chartered Accountants you have been supplied with the following adjustedTrial Balance for Universal Adelaide Stores.

REQUIRED:

Using the Trial Balance provided below, prepare the following for the period in question:

1. Fully classified Income Statement [20 marks]
2. Statement of Changes in Equity [4 marks]
3. Fully classified Balance Sheet (Narrative format) [16 marks]

   Universal Adelaide Stores

   Trial Balance

   as at 30 June 2021

   Account Name	Debit ($)	Credit ($)
   Cash at Bank	70 700
   Accounts Receivable	19 500
   Inventory (30 June 2021)	20 000
   Supplies	4 600
   Delivery Vehicles	35 000
   Accumulated Depreciation Delivery Vehicles		9 000
   Office Equipment	50 000
   Accumulated Depreciation - Office Equipment		12 500
   Office Furniture and Fixtures	65 000
   Accumulated Depreciation-Office Furniture and Fixtures		15 000
   Accounts Payable		25 100
   Bank Loan		40 000
   D. Clark, Capital (1 July 2020)		80 460
   D. Clark, Drawings	20 800
   Sales Revenue		530 000
   Sales Returns	8 600
   COS	234 260
   Telephone Bills Payable		5 700
   Advertising Expense	5 000
   Allowance for Doubtful Debts		3 900
   Selling and Distribution Expense	4 500
   Depreciation Expense Delivery Vehicles	3 000
   Depreciation Expense Office Equipment	5 000
   Depreciation Expense Office Furniture and Fixtures	6 000
   Discount Allowed	3 600
   Doubtful Debts Expense	4 800
   Salaries payable		2 000
   Insurance Expense	2 600
   Interest and Finance Expense	5 000
   Office Administration Expense	33 700
   Rent Expense	24 000
   Wages and Salaries Expense	98 000
   Totals	723 660	723 660