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Activity-13 Green

The document provides financial statements for Green's business for the year ended 30 September Year 7. It includes a statement of comprehensive income showing revenue of $73,000 and net profit of $32,764. It also includes a statement of changes in equity showing an increase in retained earnings of $32,764 and total equity of $54,727. Finally, it includes a statement of financial position as of 30 September Year 7 with total assets of $56,727 and total equity and liabilities of $56,727.

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Laura Kiss
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27 views

Activity-13 Green

The document provides financial statements for Green's business for the year ended 30 September Year 7. It includes a statement of comprehensive income showing revenue of $73,000 and net profit of $32,764. It also includes a statement of changes in equity showing an increase in retained earnings of $32,764 and total equity of $54,727. Finally, it includes a statement of financial position as of 30 September Year 7 with total assets of $56,727 and total equity and liabilities of $56,727.

Uploaded by

Laura Kiss
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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20/03/2019

Activity 13: Green solution

1
20/03/2019

Analysis of costs
IS accounts COGS Admin Selling Other Financial

COGS 28,848
Sales
Sales Returns
Purchases Returns (1,500)
Wages and Salaries (admin 5,000
staff)
Insurance 3,000
Advertising 1,500
Motor Vehicle running costs 2,210
Accountancy fees 2,083
Discounts granted
Discounts received (2,500)
Bad Debts written off +1,595
TOTAL: 26,443 7,083 6,710 - -

Activity 13: Green - Solution


B. Prepare the statement of comprehensive income for the year.

Statement of income

(in $)
Sales (revenues) 73,000 Sales-Returns-Discounts
COGS 26,443
Bad debt written off
Gross profit 46,557
Administrative costs (7,083)
Selling costs (6,710)
Other income/expenses 0
Financial income/expenses 0
Profit before taxes 32,764
Income tax
Profit for the year 32,764
Other comprehensive income 0
Total comprehensive income 32,764

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20/03/2019

Activity 13: Green - Solution


Please prepare
 the statement of changes in the equity for the year ended on that day.

Capital Retained Total Equity


(in $) Earnings (in $) (in $)
Balance at 1 October Year 6 15,000 8,463 23,463
Capital Introduced 3,000 3,000
Profit for the period 32,764 32,764
Drawings (4,500) (4,500)
Balance at 30 September Year7 18,000 36,727 54,727

Activity 13: Green - Solution


Please prepare
 the statement of financial position as at 30 September Year 7.
Green’s business: Statement of financial position as at 30 September Year 7(in $)
Non-current assets 29,700

Non-current tangible assets


29,700
Motor Vehicles
18,000
Fixtures and Fittings
11,700
Current assets 26,610
Inventory 10,000
Accounts receivables 12,700
Allowance for trade receivables (635) 12,065
Cash 4,545
Cash in hand 45
4,500
Bank
Prepaid expense 417

TOTAL assets 56,727


Owners’ equity 54,727
Capital 18,000
Retained earnings 36,727
Long-term liabilities 0
Long-term loan
Short-term liabilities 1,000
Accounts payables 1,000
Accrued expenses 1,000
TOTAL equity and liabilities 56,727

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