The Balance Sheet of Architectural Services Ltd on 31.12.

13 is shown below:
Cash
Debtors
Machinery
Less Accumulated depreciation

17000
8000
8000
3000
5000

Office equipment
Less Accumulated Depreciation:

45000
15000
30000

Creditors
Long term Loan
Retained Earnings
Share capital
Totals

60000

10000
7000
18000
25000
60000

The following transactions took place during the year 2014.

2/1. The company prepaid rent for the next 18 months for 300 per month.
3/1: The company paid 9000 for the purchase of a new photocopier. The estimated
useful life is 9 years.
8/1: the company made a payment on long term loan of 1500
22/2. The company paid 4000 to creditors for amounts due.
17/4: Best Client Ever Ltd prepaid 3000 for services that will be provided by Mobile
Services Ltd in the future.
5/7: The company provided services worth 25500. The company received 9500 and
gave credit for the rest.
20/8: Bought 2.000 worth of stationery, on credit
11/9: The company issued new shares for 25000.
30/11. Provided services worth 7000 and received the amount in cash
27/12. The company sold its machinery in the amount of 5700
28/12. Paid telephone and salaries expenses 450, 8000, respectively.
31/12: The company declared and paid dividends of 5.000
Additional information
1) Additional salaries of 3000 for the year 2014 were paid on 5/2/2015
2): Supplies on hand (i.e., stationery) at 31/12 amounted to 1500
3): The electricity bill of the year was received in the amount of 1000. The amount is
not due till 28/2/2015.
4): By December 2014, the company completed 1/5 of the services contracted for Best
Client Ever Ltd.
5) The office equipment and machinery were purchased on 1/1/2011.
6) Interest accrued on the loan for the year was paid on 2/1/15. The bank charges an
annual interest rate of 6 %. The company makes one annual payment of 1500 for the
repayment of capital on the 8 January of every year.
7) The companys estimated taxable income for the year is 7000 and the corporate tax
rate is 10%.
Required: Prepare the Income Statement, Statement of Retained Earnings, Balance Sheet
and Statement of Cash flows, for 2014.