Question

TASK 5 a) WEEK 11 Closing journal entries and the Adjusted Trial Balance are provided below. Required: Complete the Profit & Loss Statement for the period ending 31/08/20XX & the Statement of Changes in Equity as at 31/8/20XX GENERAL JOURNAL Closing Entries August 31 Date Particulars DR CR Aug-31 P & L Summary $ 162,847.10 Opening Inventory $ 100,174.00 Purchases $ 49,350.00 Freight inwards $ 200.00 Sales salaries expense $ 6,900.00 Depreciation Deliv. Truck $ 450.00 Delivery expense $ 33.00 Electricity expense $ 275.00 Office salaries expense $ 2,770.00 Office Supplies Expense $ 186.00 Depreciation Store Equip. $ 600.00 Insurance Expense $ 250.00 Rent Expense $ 300.00 Telephone expense $ 220.00 Legal/Acctg. Fees Exp. $ 350.00 Discount allowed $ 789.10 GENERAL JOURNAL Closing Entries August 31 cont. Date Particulars DR CR Aug-31 Sales $ 102,945.00 Discount received $ 1,008.00 Closing Inventory value $86,575 P&L Summary $ 190,528.00 close revenues and bring C/Inv. to account P & L Summary $ 27,680.90 Capital $ 27,680.90 . Trf profit Capital $ 18,180.00 Drawings $ 18,180.00 Close Drawings account

Answer 1

THE BRIGHT SPOT Profit & Loss Statement p/ending 31/8/20XX
Net Sales		$102,155.90
Less: COGS
Opening Inventory	$100,174.00
Purchases	$49,350.00
Freight inwards	$200.00
Goods Available for Sale	$149,724.00
Less: Closing inventory	($86,575.00)
Less: Discount received	($1,008.00)	$62,141.00
GROSS PROFIT		$40,014.90
Less: Operating expenses
Selling & Distribution:
Sales salaries expense	$6,900.00
Depreciation Deliv. Truck	$450.00
Delivery expense	$33.00	$7,383.00
General & Administrative:
Electricity expense	$275.00
Office salaries expense	$2,770.00
Office supplies expense	$186.00
Depreciation Store Equip.	$600.00
Insurance expense	$250.00
Rent expense	$300.00
Telephone expense	$220.00
Lega/Acctg. Fees Exp.	$350.00	$4,951.00
NET PROFIT		$27,680.90

.

THE BRIGHT SPOT Profit & Loss Statement p/ending 31/8/20XX
Aug-01	Opening Capital	$154,940.00
	Add: Profit for the period	$27,680.90
		$182,620.90
	Less: Drawings	($18,180.00)
Aug-31	Closing Capital	$164,440.90