The following trial balance was extracted from the books of Joe Johnson, a retail salesman, on...

  

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The following trial balance was extracted from the books of Joe Johnson, a retail salesman, on May 31, 2014. Particulars Building Equipment Purchases Wages Bad debts Loan interest Provision for depreciation - building Provision for depreciation - equipment Capital Loan Commission received Bank Rent received Discounts Returns Carriage inwards Carriage outwards Provision for bad debts Electricity Creditors Drawings Stock at June 1, 2013 Cash Debtors Sales Insurance $ 180,000 155,000 160,000 55,500 1,700 5,000 4,150 2,500 5,250 3,200 7,500 17,000 55,200 7,500 45,000 15,000 719,500 S 16,000 15,000 265,000 80,000 10,000 34,500 25,000 7,500 3,500 8,000 47,200 207,800 719,500 Notes: a) Stock at the year end was valued at $51,500. b) Insurance owing was $5,600, wages is prepaid by $1,000. c) The provision for bad debt is to be adjusted to 20% of debtors. d) Depreciate building at 10% using the straight-line method and equipment 15% based on the reducing balance method. e) Commission received owing amounted to $2,500. f) Joe rented a tenant some office space for the entire year, however, the tenant overpaid Joe by $15,000. Required: Prepare the statement of profit and loss for the year ended May 31, 2014, and the statement of financial position as at that date. The following trial balance was extracted from the books of Joe Johnson, a retail salesman, on May 31, 2014. Particulars Building Equipment Purchases Wages Bad debts Loan interest Provision for depreciation - building Provision for depreciation - equipment Capital Loan Commission received Bank Rent received Discounts Returns Carriage inwards Carriage outwards Provision for bad debts Electricity Creditors Drawings Stock at June 1, 2013 Cash Debtors Sales Insurance $ 180,000 155,000 160,000 55,500 1,700 5,000 4,150 2,500 5,250 3,200 7,500 17,000 55,200 7,500 45,000 15,000 719,500 S 16,000 15,000 265,000 80,000 10,000 34,500 25,000 7,500 3,500 8,000 47,200 207,800 719,500 Notes: a) Stock at the year end was valued at $51,500. b) Insurance owing was $5,600, wages is prepaid by $1,000. c) The provision for bad debt is to be adjusted to 20% of debtors. d) Depreciate building at 10% using the straight-line method and equipment 15% based on the reducing balance method. e) Commission received owing amounted to $2,500. f) Joe rented a tenant some office space for the entire year, however, the tenant overpaid Joe by $15,000. Required: Prepare the statement of profit and loss for the year ended May 31, 2014, and the statement of financial position as at that date.