prepare income statement and statement of financial position with T account! any

Question

prepare income statement and statement of financial position with T account! any one help please

Brian set up a business selling quality electrical goods on April 1, 2017 The following represents the business transactions of the first month 1. Brian paid $25,000 to the business acoount 2. He obtained a 10 year business loan of S100000 from the bank paying the cash into the business bank account. 3. He purchased a fülly equipped premises for $600,000. He paid $1001000 in cash and took out a mortgage loan for the balance 4. During the month, Brian bought for $700.000 some electrical goods (on credit). 5. During the month, Brian sold for $600,000 some electrical goods that had cost $350,000. The total sales of $600,000 consisted of S150,000 sales on cash and $450 000 sales on credit 6. At the end of the month, Brian paid the following expenses from his business bank account i Wages: $5,000 - Interest: S1,300 - Gas and electricity: $TOO Sundry expenses: $500 Brian bought $550,000 of electrical equipment. He paid $150.000 in cash the rest being acquired on credit Prepare the income statement for the month ard the stareme of the mont of tinanctai positton at the an

Explanation / Answer

Solution :

Cash Account Particulars Debit Particulars Credit To Brian capital $25,000.00 By Building $100,000.00 To Bank Loan $100,000.00 By Wages $5,000.00 To Sales Revenue $150,000.00 By Interest $1,300.00 By Gas and Electricity $700.00 By Sundry Expense $500.00 By Equipment $150,000.00 By Ending Balance $17,500.00 Total $275,000.00 Total $275,000.00

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