The following additional information has been made available:

i. Electricity expense accrued $9,700.

ii. $2,150 for Rent Received relates to 2018.

iii. Office expenses prepaid $1,700.

iv. Depreciation is to be provided for as follows: Motor Vehicle at 25% of cost; Fixtures and Fittings at 30% reducing balance method.

v. Stock on December 31, 2017, was valued at $15,200.

Required:

1. Prepare the Income Statement for the year ending December 31, 2017 (show all workings)

Details/Accounts	Dr	Cr
Capital	-	151,350
Acc. Prov. for Depreciation: Fixtures and Fittings Jan. 2017	-	4,500
Acc. Prov. for Depreciation: Motor Vehicle Jan. 2017	-	4,950
Creditors	-	40,500
Commission Received	-	5,400
Rent Received	-	18,000
Sales	-	61,500
Purchases	17,400	-
Office Expenses	18,600	-
Miscellaneous Expenses	1,110	-
Salary and Wages	11,700	-
Carriage inwards	150	-
Telephone Expense	360	-
Rent expense	3,150	-
Electricity Expense	1,710	-
Discounts allowed	240	-
Return Inwards	600	-
Stock, January 1, 2017	5,400	-
Debtors	58,500	-
Cash at Bank	35,100	-
Drawings	13,380	-
Land	58,800	-
Fixtures and Fittings	25,500	-
Motor Vehicle	34,500	-
	286,200	286,200

Answer rating: 100% (QA)

Date Income statement For the year ending December 31 2017 Particulars Rev... View the full answer