0 DEBIT CREDIT ADJUSTMENT DATA:

Cash A BS 45,000 1.       Mds. inventory en

A/c receivable A BS 175,000 2.       Depreciation on e
Office equipment A BS 325,000 3.       Tax rate is 20% ap
Marketing expense E is 12,500
Prepaid advertising A BS 8,500 Required:
Other expense E is 6,000 Prepare Income Statement
Office supplies expense E is 3,500 Prepare Classified Balance Sh
Interest expense E is 16,000
Mds. Inventory-beginning E is 27,800 Assets
Purchases E is 275,000 liabilities
Transportation-in E is 22,000 capital
Sales return CR is 12,000 revenue
Salaries expense E is 65,000 expense
Sales revenue R is 575,000
Purchases return CE is 1800
Purchases discount CE is 4500
Interest income R is 27,000
A/c payable L BS 35,000
Capital - Saleem c BS 222,300
Short-term loan L BS 55,000
Bill payable L BS 22,700
Long-term loan L BS 50,000
  TOTAL  993,300 993,300
ADJUSTMENT DATA:
1.       Mds. inventory ending Rs.45,000
2.       Depreciation on equipment cost 2%
3.       Tax rate is 20% applied

Prepare Income Statement

Prepare Classified Balance Sheet

Balance
sheet
income
statemen
t
 0 DEBIT CREDIT ADJUSTMENT DATA:
Marketing expense E is 12,500
Other expense E is 6,000 Prepare Income Statement
Office supplies expense E is 3,500 Prepare Classified Balance Sh
Interest expense E is 16,000
Mds. Inventory-beginning E is 27,800 Assets
Purchases E is 275,000 liabilities
Transportation-in E is 22,000 capital
Sales return CR is 12,000 revenue
Salaries expense E is 65,000 expense
Sales revenue R is 575,000
Purchases return CE is 1800
Purchases discount CE is 4500
Interest income R is 27,000
  TOTAL  993,300 993,300
1.       Mds. inventory ending Rs.45,000
2.       Depreciation on equipment cost 2%
3.       Tax rate is 20% applied

Saleem and company

Income statement
For the year ended Dec 31
Sales revenue 575,000
Less sales return 12,000
Net sales 563,000
Less cost of goods sold
Mds. Inventory-beginning 27,800
Add Purchase 275,000
Less Purcahse return 1800
purchase discount 4500 6300
Net Purchase 268,700
add transporation 22,000
Total cost of purchae 290,700
cost of goods available for sales 318,500
Less M.inventory ending 45000
cost of goods sold 273,500
Gross profit 289,500
Less opoerating exp
Marketing expense 12,500
Other expense 6,000
Office supplies expense 3,500
Salaries expense 65,000
Depreciation expense 6,500
total operating exp 93,500
Operating income / earning before interst
and taxes / EBIT 196,000
less interst charges 16000
Earing before tax 180,000
Less taxes 36000
net income from operation 144,000
add interst income 27000
total net income for the year 171,000

0 DEBIT CREDIT
Cash A BS 45,000
A/c receivable A BS 175,000
Office equipment A BS 325,000
Prepaid advertising A BS 8,500
A/c payable L BS 35,000
Capital - Saleem c BS 222,300
Short-term loan L BS 55,000
Bill payable L BS 22,700
Long-term loan L BS 50,000
1.       Mds. inventory ending Rs.45,000
2.       Depreciation on equipment cost 2%
3.       Tax rate is 20% applied
Saleem and company
Balance sheet
As on Dec 31 2015
Assets
current assets
Cash 45,000
A/c receivable 175,000
M.inventory 45,000
Prepaid advertising 8,500
total current assets 273,500
Fixed assets
Office equipment 325,000
Less allowance for depreciation 6,500 318,500
Total fixed assets 318,500
592,000

Liabilities + owaner equity

Liabilities
Tax payable 36,000
A/c payable 35,000
Short-term loan 55,000
Bill payable 22,700
Long-term loan 50,000
Total Liabilities 198,700
Owaner Equity
Capital 222,300
add net profit 171,000
Total owaner equity 393,300
592,000
ADJUSTMENT DATA:

Prepare Income Statement

Prepare Classified Balance Sheet

Balance
sheet
income
statemen
t
 TITLE OF ACCOUNTS DEBIT CREDIT 1.      Inventory on hand at the e
Cash BS 110,350 2.      Depreciation on Furniture b
Account receivable BS 54600 3.      Tax rate is 10% applied
Note receivable BS 8000 Required:
Inventory-opening IS 40,500 ·         Income Statem
Supplies BS 650 ·         Balance Sheet
Prepaid insurance BS 1200
Furniture and Fixture BS 183,200
Accumulated depreciation-furniture BS 2400
Account payable BS 47,000
Note payable (long-term) BS 12,600
Capital-Frank BS 100,000
Sales revenue IS 338,000
Sales discount IS 1400
Sales return and allowance IS 2000
Interest revenue IS 600
Purchases IS 89,300
Purchases discount IS 3000
Purchases return and allowances IS 1200
Freight in IS 5200
Rent expense IS 8400
TOTAL 504,800 504,800
nventory on hand at the end of the year $ 42,000
epreciation on Furniture book value 2%
ax rate is 10% applied

·         Income Statement showing EBIT and EAT

·         Balance Sheet
 TITLE OF ACCOUNTS DEBIT CREDIT 1.      Inventory on hand at the e
Inventory-opening IS 40,500 ·         Income Statem
Sales revenue IS 338,000
Sales discount IS 1400
Sales return and allowance IS 2000
Interest revenue IS 600
Purchases IS 89,300
Purchases discount IS 3000
Purchases return and allowances IS 1200
Freight in IS 5200
Rent expense IS 8400
TOTAL 504,800 504,800
1.      Inventory on hand at the end of the year $ 42,000
2.      Depreciation on Furniture book value 2%
3.      Tax rate is 10% applied
Saleem and company
Income statement
For the year ended Dec 31
Sales 338,000
Less sales return 2,000
Sales discount 1,400 3,400
Net sales 334,600
Less cost of goods sold
Inventory-opening 40,500
Add Purchase 89,300
Less Purcahse return 1,200
purchase discount 3,000 4,200
Net Purchase 85,100
add Fright 5,200
Total cost of purchae 90,300
cost of goods available for sales 130,800
Less M.inventory ending 42,000
cost of goods sold 88,800
Gross profit 245,800
Less opoerating exp
Rent expense 8,400
Depreciation expense (183200-2400) X
2% 3,616
total operating exp 12,016
Operating income / earning before
interst and taxes / EBIT 233,784
Less taxes 23,378
net income from operation 210,406
add interst income 600
total net income for the year 211,006
 Saleem and company
Balance sheet
As on Dec 31 2015
Assets
current assets
Cash 110,350
A/c receivable 54,600
Note receivable 8,000
M.inventory 42,000
supplies 650
Prepiad insurance 1,200
total current assets 216,800
Fixed assets
Furniture 183,200
Less allowance for depreciation 6,016 177,184
Total fixed assets 177,184
393,984

Liabilities + owaner equity

Liabilities
Tax payable 23,378
A/c payable 47,000
Note payable 12,600
Total Liabilities 82,978
Owaner Equity
Capital 100,000
add net profit 211,006
Total owaner equity 311,006
393,984
nventory on hand at the end of the year $ 42,000
·         Income Statement showing EBIT and EAT
 TITLE OF ACCOUNTS DEBIT CREDIT
Cash 145,000
A/c receivable 75,000
Plant 325,000
Selling expenses 12,500
Prepaid Rent 8,500
Other expenses 6,000
Office supplies expense 3,500
Interest expense 16,000
Mds. Inventory-Beg 27,800
Purchases 275,000
Transportation-in 22,000
Sales return 12,000
Equipment 500,000
Acc. dep-equipment 75,000
Acc. dep- plant 100,000
All for bad debts 12,000
Salaries expenses 65,000
Marketable securities 45,000
Sales revenue 695,000
Purchases return 1,800
Purchases discount 4,500
Commission income 27,000
A/c payable 35,000
Capital 222,300
Short term loan 55,000
Long term loan 160,000
Bill payable 22,700
Retained earning 128,000
 TOTAL 1,538,300 1,538,300

ADJUSTMENT DATA:

1.      Depreciation charged 5% on equipment and 2% on plant book value.

2.      Inventory on hand at the end of the year Rs.12,000.

3.      Tax rate 10%

Required: Income Statement and Balance Sheet