Question

The following trial balance was extracted from the lediger of Stephen Chee, a sola trader, as at
31 May 20X1 - the end of his financial
STEPHEN CHEE
TRIAL BALANCE AS AT 31 MAY 20X
Cr
$
Property, at cost
120,000
Equipment, at cost
B0.000
Accumulated depreciation (as at 1 June 20x0)
- on property
20,000
-on equipment
38,000
Purchases
250,000
Sales
402 200
Inventory, as at 1 June 20X0
50,000
Discounts received
4.800
Returns out
15,000
Wages and salaries
58,800
Irrecoverable debts
4,600
Loan interest
5.100
Other operating expenses
17,700
Trade payables
36,000
Trade receivables
38,000
Cash in hand
300
Bank
19,300
Drawings
24,000
Allowance for receivables
500
17% long-term loan
30,000
Capital, as at 1 June 20X0
121,300
667,800 667 800
The following additional information as at 31 May 20X1 is available.
(a) Inventory as at the close of business has been valued at cost at $42,000.
Wages and salaries need to be accrued by $800.
Other operating expenses are prepaid by $300.
(d)
The allowance for receivables is to be adjusted so that it is 2% of trade receivables.
Depreciation for the year ended 31 May 20X1 has still to be provided for as follows.
(0) Property: 1.5% per annum using the straight line method
Equipment: 25% per annum using the reducing balance method
Required
Prepare Stephen Chee's statement of profit or loss for the year ended 31 May 20X1 and his statement of
financial position as at that date.​

Answer 1

Explanation:

so confusing..................