1.

The following Trial Balance was extracted from the books of Jack Frost on August 31, 2014.
$

Bank
Capital
Carriage Inwards
Carriage Outwards
Cash
Debtors
Creditors
Discount Allowed and Discounts Received
Drawings
Insurance
Rent Received
Mortgage
Motor Vehicle
Short term loan
Office Equipment
Long Term Loan
Purchases
Purchases Returns
Returns Inwards
Salaries
Sales
Inventory
Telephone
Motor Expenses
Salesmen Salaries
Water & Rates

$
5 620
5 000

125
320
624
12 680
230
5 100
205

9 530
149
4 000
26 000

65 000
2 300
27 000
3 340
79 547
638
401
2 450
185 600
27 300
6 500
1 345
750
1 360
236 557

236 557

The following additional information is provided.

(1) Closing Stock at year end $3 745
(2) Prepaid Telephone Expense amounted to $250.
(3) Water & Rates still outstanding at the end of the year - $500
(4) Salesmen Salaries paid in advance $50
(5) Motor expenses accrued $155
You are required to:
(a)
Prepare Income Statement for Jack Frost for the year ending August 31, 2014.
(b)

Prepare the Balance Sheet for Jack Frost as at August 31, 2014.

(12 marks)
(8 marks)

Total 20 marks

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_____________________________________________________________________
$

(12 marks)
______________________________________________________________
_____________________________________________________________________
$

(8 marks)
Total 20 marks