Prepare an income statement, and statement of financial position from the data in the images
Extracted text: Question One The following trial balance relates to Succeed Limited as at 30 June 2020 K K 88,000 K1 ordinary shares – issued 88,000 44,000 8% K1 preference shares 44,000 Share premium account 11,000 Revaluation reserve - PPE 33,000 Sales 220,000 Purchases 135,300 Opening inventory 87,279 Trade receivables and prepayments 29,920 Trade payables and accruals 15,094 Bank balance 4,726 10% Loan stock 17,600 General reserve 30,800 Bad debts 374 Wages and salaries 31,020 Installment tax paid 3,850 Insurance 1,551 Dividend paid - Preference 3,520 Dividend paid - Ordinary 2,420 Postage and telephone 682 2 | Page
Extracted text: Light and heat 1,338 Loan stock interest (% vear to 31 December 2019) 80 Directors' fees 2,750 General expenses 3.419 Vehicles (cost K21,340) 7,480 Office furniture and equipment (cost K49.104) 30.184 Land and buildings at valuation 145,420 Retained earnings at 1 July 2019 32.618 492.111 492.111 The following information is also available: 1. Closing Inventory was giren as K92, 237 2. The land and buildings are to be revalued at K165,000 3. Office furniture and equipment is to be depreciated at 15% on cost, and vehicles at 20% on cost 4. A bill for K348 in respect of electricity consumed up to 30 June 2020 has not been entered in the l 5. The amount for insurance includes a premium of K330 paid in December 2019 to cover the comp December 2020. 6. Provisions are to be made for: Directors' fees K5,500 Audit fees K1,320 7. The total tax expense for the year is estimated at K8,250. 8K13, 200 should be transferred to the general reserve. Required 3|Page Prepare a statement of profit or loss for the year ended 30 June 2020 and a statement of financ