Accounting Is and Bs

Topics: Generally Accepted Accounting Principles, Balance sheet, Asset Pages: 3 (493 words) Published: September 7, 2013


Artful Antiques has provided the following information that relates to the financial year ended 31 March 2013:

Accounts payable Accounts receivable Accrued wages Accumulated depreciation - Equipment Accumulated depreciation - Vehicle Capital- A. Frank Cash at bank Cost of goods sold Equipment (at cost) General and administrative expenses Interest income Interest expense Inventory Loan (payable in December 2014) Prepaid insurance Prepaid rent Rent expense Sales Selling expenses Vehicle (at cost) .

13,000 9,000 3,000 8,000 4,000 76,600 23,000 80,000 20,000 5,000 1,000 2,000 48,000 25,000 3,600 4,000 40,000 170,000 17,000 21,000 25,000

I Wages paid
Additional Information:

The prepaid insurance relates to a 12-months insurance policy that was taken out on 01 November 2012. The prepaid rent relates to the monthly rent on Artful Antiques' retail outlet in Flemington, which is paid in advance on the 15'" of each month. Depreciation for the year ended 31 March 2013 has not been recorded for the equipment which is being depreciated using the straight-line method over 10 years (wrth zero residual value), nor for the vehicle which is being depreciated at 10% per annum using the reducing balance method. The sales figure includes an amount of $6,000 that was received in advance for goods due to be delivered in April 2013.


(a) Prepare a classified Income Statement (Statement of Financial Perfomnance) for Artful Antiques for the year ended 31 March 2013. (b) Prepare a classified Balance Sheet (Statement of Financial Position) for Artful Antiques as at 31 March,2013.


Artful Antiques
Income Statement for year ended 31 March 2013

Sales (170,000 - 6,000) Less COGS Gross profit Other income Interest income Gross profit & other income Expenses Wages (25,000 + 3,000) Depreciation - Equipment ([20,000 -...
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