Tony Anderson Productions is a sole trader-ship. On December 31, 2010 the following Trial Balance was...

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Tony Anderson Productions is a sole trader-ship. On December 31, 2010 the following Trial Balance was extracted from the business's books: Trial Balance as at December 31, 2010 Details Return inwards Discount allowed. Stock, January 1, 2010 Drawings Commission receivable Accounts receivable Transportation charge for purchases Cash at bank Fuel charges for vehicles Sales Electricity Discount received Bills receivable Purchases Accounts payable Cash in hand Capital Motor vehicles Accumulated depreciation on motor vehicles Rent Return outwards Furniture and fittings Accumulated depreciation on furniture and fittings Stationery Insurance Salaries Provision for bad and doubtful debts Dr S 350,000 450,000 5,000,000 2,400,000 7,400,000 2,000,000 Required: (a) 3,500,000 2,800,000 300,000 17,880,000 3,000,000 15,000,000 3,000,000 3,500,000 400,000 360,000 6,500,000 Total Notes: 1. On December 31, 2010 stock on hand was valued at $3,750,000. Cr S 1,500,000 1,475,000 45,350,000 600,000 2/4 300,000 15,550,000 2,500,000 380,000 1,000,000 ‒‒‒‒‒‒‒‒‒‒‒.. 185,000 73.840.000 73.840.000 2. Electricity owing as at December 31, 2010 amounted to $20,500, while $40,000 was paid for stationery to be received in January 2011. 3. Commission receivable amounting to $75,000 was outstanding on December 31, 2010. 4. The provision for bad and doubtful debts is to be adjusted to 12% of accounts receivable. 5. Depreciation is to be charged as follows: Motor vehicles, 20% reducing balance; Furniture and fittings, 10% straight line. (i) Prepare Tony Anderson Productions Income Statement for the period ending December 31, 2010. (12 Marks) (ii) Prepare A Balance Sheet as at December 31, 2010. (8 Marks) Tony Anderson Productions is a sole trader-ship. On December 31, 2010 the following Trial Balance was extracted from the business's books: Trial Balance as at December 31, 2010 Details Return inwards Discount allowed. Stock, January 1, 2010 Drawings Commission receivable Accounts receivable Transportation charge for purchases Cash at bank Fuel charges for vehicles Sales Electricity Discount received Bills receivable Purchases Accounts payable Cash in hand Capital Motor vehicles Accumulated depreciation on motor vehicles Rent Return outwards Furniture and fittings Accumulated depreciation on furniture and fittings Stationery Insurance Salaries Provision for bad and doubtful debts Dr S 350,000 450,000 5,000,000 2,400,000 7,400,000 2,000,000 Required: (a) 3,500,000 2,800,000 300,000 17,880,000 3,000,000 15,000,000 3,000,000 3,500,000 400,000 360,000 6,500,000 Total Notes: 1. On December 31, 2010 stock on hand was valued at $3,750,000. Cr S 1,500,000 1,475,000 45,350,000 600,000 2/4 300,000 15,550,000 2,500,000 380,000 1,000,000 ‒‒‒‒‒‒‒‒‒‒‒.. 185,000 73.840.000 73.840.000 2. Electricity owing as at December 31, 2010 amounted to $20,500, while $40,000 was paid for stationery to be received in January 2011. 3. Commission receivable amounting to $75,000 was outstanding on December 31, 2010. 4. The provision for bad and doubtful debts is to be adjusted to 12% of accounts receivable. 5. Depreciation is to be charged as follows: Motor vehicles, 20% reducing balance; Furniture and fittings, 10% straight line. (i) Prepare Tony Anderson Productions Income Statement for the period ending December 31, 2010. (12 Marks) (ii) Prepare A Balance Sheet as at December 31, 2010. (8 Marks)

Answer rating: 100% (QA)

a i Income Statement Calculations Motor Vehicles 20 on 15000000 3000000 Furniture and Fittings 10 on 3500000 350000 Bad Debts adjusted provision 12 on ... View the full answer