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The following trial balance was extracted from the ledger of Kibusa JoJo, a sole trader, as at 31 May 20X3- the end of his financial year. Kibusa JoJo TRIAL BALANCE AS AT 31 MAY 20X3 Property, at Cost Equipment, at Cost Provisions for depreciation (as at 1 June 20X2) - on Property -on equipment Purchases Sales Inventory as at 1 June 20X2 Discount allowed Discount received Returns Out Wages and Salaries Irrecoverable Debts Loan Interest Other Operating expenses Trade Payables Trade Receivables Cash in Hand Bank Drawings Allowance for receivables 17% long term loan Capital Dr K'000 120,000 80,000 250,000 50,000 18,000 58,800 4,600 5,100 17,700 38,000 300 1,300 24,000 667,800 The following additional information as 31st May 20X3 is available. (a) Inventory as at the close of business has been valued at K42, 000,000. Cr K'000 20,000 38,000 402200 4,800 15,000 36,000 500 30,000 121,300 667,800 (b) Wages and Salaries need to be accrued by k800, 000. (c) Other Operating expenses are prepaid by K300, 000. (d) The allowance for receivables is to be adjusted so that it is 2% of trade receivables. (e) Depreciation for the year ended 31 May 20X3 has still to be provided for as follows. Property: 1.5% per annum using straight line method and Equipment: 25% per annum using the reducing balance method. Required Prepare Kibusa JoJo s Income Statement for the year ended 31 May 20X3 and his statement of financial position as at that date.

The following trial balance was extracted from the ledger of Kibusa JoJo, a sole trader, as at 31 May 20X3- the end of his financial year. Kibusa JoJo TRIAL BALANCE AS AT 31 MAY 20X3 Property, at Cost Equipment, at Cost Provisions for depreciation (as at 1 June 20X2) - on Property -on equipment Purchases Sales Inventory as at 1 June 20X2 Discount allowed Discount received Returns Out Wages and Salaries Irrecoverable Debts Loan Interest Other Operating expenses Trade Payables Trade Receivables Cash in Hand Bank Drawings Allowance for receivables 17% long term loan Capital Dr K'000 120,000 80,000 250,000 50,000 18,000 58,800 4,600 5,100 17,700 38,000 300 1,300 24,000 667,800 The following additional information as 31st May 20X3 is available. (a) Inventory as at the close of business has been valued at K42, 000,000. Cr K'000 20,000 38,000 402200 4,800 15,000 36,000 500 30,000 121,300 667,800 (b) Wages and Salaries need to be accrued by k800, 000. (c) Other Operating expenses are prepaid by K300, 000. (d) The allowance for receivables is to be adjusted so that it is 2% of trade receivables. (e) Depreciation for the year ended 31 May 20X3 has still to be provided for as follows. Property: 1.5% per annum using straight line method and Equipment: 25% per annum using the reducing balance method. Required Prepare Kibusa JoJo s Income Statement for the year ended 31 May 20X3 and his statement of financial position as at that date.

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 2PA: Rios Financial Co. is a regional insurance company that began operations on January 1, Year 1. The...
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The following trial balance was extracted from the ledger of Kibusa JoJo, a sole trader, as at 31 May 20X3- the end of his financial year. Kibusa JoJo TRIAL BALANCE AS AT 31 MAY 20X3 Property, at Cost Equipment, at Cost Provisions for depreciation (as at 1 June 20X2) - on Property -on equipment Purchases Sales Inventory as at 1 June 20X2 Discount allowed Discount received Returns Out Wages and Salaries Irrecoverable Debts Loan Interest Other Operating expenses Trade Payables Trade Receivables Cash in Hand Bank Drawings Allowance for receivables 17% long term loan Capital Dr K'000 120,000 80,000 250,000 50,000 18,000 58,800 4,600 5,100 17,700 38,000 300 1,300 24,000 667,800 The following additional information as 31st May 20X3 is available. (a) Inventory as at the close of business has been valued at K42, 000,000. (b) Wages and Salaries need to be accrued by k800, 000. (c) Other Operating expenses are prepaid by K300, 000. Cr K'000 20,000 38,000 402200 4,800 15,000 36,000 500 30,000 121,300 667,800 (d) The allowance for receivables is to be adjusted so that it is 2% of trade receivables. (e) Depreciation for the year ended 31 May 20X3 has still to be provided for as follows. Property: 1.5% per annum using line method and Equipment: 25% per annum using the reducing balance method. Required Prepare Kibusa JoJo s Income Statement for the year ended 31 May 20X3 and his statement of financial position as at that date.
Transcribed Image Text:The following trial balance was extracted from the ledger of Kibusa JoJo, a sole trader, as at 31 May 20X3- the end of his financial year. Kibusa JoJo TRIAL BALANCE AS AT 31 MAY 20X3 Property, at Cost Equipment, at Cost Provisions for depreciation (as at 1 June 20X2) - on Property -on equipment Purchases Sales Inventory as at 1 June 20X2 Discount allowed Discount received Returns Out Wages and Salaries Irrecoverable Debts Loan Interest Other Operating expenses Trade Payables Trade Receivables Cash in Hand Bank Drawings Allowance for receivables 17% long term loan Capital Dr K'000 120,000 80,000 250,000 50,000 18,000 58,800 4,600 5,100 17,700 38,000 300 1,300 24,000 667,800 The following additional information as 31st May 20X3 is available. (a) Inventory as at the close of business has been valued at K42, 000,000. (b) Wages and Salaries need to be accrued by k800, 000. (c) Other Operating expenses are prepaid by K300, 000. Cr K'000 20,000 38,000 402200 4,800 15,000 36,000 500 30,000 121,300 667,800 (d) The allowance for receivables is to be adjusted so that it is 2% of trade receivables. (e) Depreciation for the year ended 31 May 20X3 has still to be provided for as follows. Property: 1.5% per annum using line method and Equipment: 25% per annum using the reducing balance method. Required Prepare Kibusa JoJo s Income Statement for the year ended 31 May 20X3 and his statement of financial position as at that date.
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