Answer:
Net income = $31,130
Total Assets = Owner's Equity and Liabilities = $104,230
Explanation:
The the Income Statement of Profit or Loss and the Statement of Financial Position can be prepared as follows:
Sugar Almonds Ltd
Income Statement of Profit or Loss
For the Year Ended 31st December 2020
Particulars $ $
Sales Revenue 93,700
Cost of sales:
Opening inventory 12,000
Purchases 49,000
Closing inventory - income statement (24,350)
Cost of sales (36,650)
Gross profit 57,050
Operating expenses:
Administrative Expenses (850)
Rent paid (2,000)
Telephone (900)
Wages (21,650)
Travel expenses (330)
Total operating expenses (25,730)
Interest income (expense):
Interest paid (190)
Net income 31,130
Sugar Almonds Ltd
The Statement of Financial Position
As at 31st December 2020
Particulars $ $
Fixed Assets
Premises at cost 70,000
Vehicles at cost 5,800
Total Fixed Assets 75,800
Current Assets
Cash 630
Bank 2,100
Closing inventory - Statmt of fin positn 24,350
Trade Receivables 1,350
Total Current Assets 28,430
Total Assets 104,230
Owner's Equity
Capital 72,000
Drawings (6,450)
Net income 31,130
Total Owner's Equity 96,680
Current Liabilities
Trade Payables 6,400
VAT 1,150
Total Current Liabilities 7,550
Owner's Equity and Liabilities 104,230
