From the following balances and notes write up the "Income Statement for the year ended
December and "The ASSET SECTION of the Statement of Financial Position as at
December
Balances as at December
NOTES:
Closing Inventory as December is
a Property is not depreciated
b Machinery & Equipment is depreciated on a straightline basis for years with a scrap value
c Vehicles are depreciated on reducedbalance method of
Advertising has been prepaid by
Electricity has an accrual of
One debtors has gone bankrupt owing ie a Bad Debt
Corporation tax bill is end of year.
REQUIRED
a Prepare the journal entries for each of the yearend adjustments marks
b Prepare the Income Statement for the year ended December st marks
c Prepare the "Asset section" ONLY in the Statement of Financial Position as at December
st marks