Question 4 [25 Marks] Use the information given below to draw up the Statement of Comprehensive Income for TREK TRADING for the year ended 28 February 2017. Adjustments and additional information: A. Fee income of R4 600 has been received in advance. B. No entry has been made for a direct deposit of R2 000 made by a debtor whose account had been written off as irrecoverable. C. Consumables include an amount of R120 for photocopies of recipe books made by the proprietor. D. Physical stocktaking on 28 February 2017 revealed the following inventories on hand Trading inventory, R153 000 Consumables, R880. E. A payment of R2 200 on 27 February 2017 for security services has been incorrectly recorded as insurance. Correct this error. F. The landlord has increased the monthly rent by R2 000 as per tenancy agreement with effect from 01 September 2016. Rent for February 2017 has not yet been paid. G. An advertising contract costing R1 320 was paid and recorded on 01 August 2016. This contract expires on 31 July 2017. Make the necessary adjustment. H. Annual depreciation is provided as follows: On equipment at 12% p.a. on cost. On vehicle at 20% p.a. on the diminishing balance method. I. Provision for bad debts must be increased by R1 500. J. Provide for outstanding interest on fixed deposit. K. Interest on loan for the last quarter is outstanding

Trektrading

BALANCE SHEET debit credit

Capital 980000 credit

drawings 284 210debit

vehicle 750000debit

equipment 270000debit

accumulated deprceiation vehicle 360000credit

accumulated deprseciation equipment 118800credit

fixed deposit 70000debit

trading inventory 146000debit

debtords control 90000debit

provision for bad debts 3500credit

bank 567765debit

cash float 5200debit

creditors control 72000credit

loan 280000credit

nominal accounts

Sales 1234000credit

cost os sales 725880debit

sales return 18120debit

salaries and wages 400000debit

bad debts 4200debit

bank charges 3500debit

fees income 610925credit

discount received 4900credit

insurance 23400debit

electricity and water 27400debit

telephone 10800debit

rent exp 143100debit

interset on loan 37800debit

ineterst on fixed deposit 7875credit

security 23800debit

consumabels 18000debit

adverising 20550debit

vehicle expense 13275debit

staff development 25000debit

3678000 3678000