The following list of balances was extracted from the books of Kai Jordan at 31 December 2020, the sole trader’s year end date. The bookkeeper was unable to extract the figure for the Capital account...

The following list of balances was extracted from the books of Kai Jordan at 31 December 2020, the sole trader’s year end date. The bookkeeper was unable to extract the figure for the Capital account before catching the flu and having to take sick leave.  However, the bookkeeper assured that all the other account balances are correct, which means that extracting trial balance will be able to solve the 'missing' Capital account balance. Capital ?  Accounts payables 89,244 Accounts receivables 102,432 Accruals 14,136 Bad debts expense 17,076 Bank 26,952 Carriage in 6,624 Carriage out 8,544 Closing stock 53,880 Commissions received 1,824 Depreciation expense 79,824 Discounts allowed 22,380 Discounts received 9,300 Drawings 90,000 Equipment 540,000 Insurance 21,024 Interest expense 8,520 Loan 150,000 Motor Vehicles 180,000 Opening stock 47,700 Other payables 7,920 Prepayments 6,384 Provision for depreciation - Equipment 162,000 Provision for depreciation - Motor Vehicles 72,000 Provision for doubtful debts 1,140 Purchases 594,960 Returns in 3,096 Returns out 4,020 Sales 853,740 Telephone 24,792 Water rates 15,540 Required  For the list of balances above, you are required to:  Extract a trial balance from the above list of balances (filling in the correct Capital figure)                                            PART B The following considerations are to be taken into account for the year end financial statements: An accrual of $450 is to be included for water rates The insurance expense includes a prepayment of $1,000 Depreciation for the month of December was omitted from the list. It is to be included in the financial statements as follows: Equipment        $2,750 Motor vehicles        $1,800 Required  Prepare the Income Statement for the year ended 31 December 2020.        Prepare the Balance Sheet as at 31 December 2020.
Jun 01, 2022
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