Question

Prepare an income statement for December 2020 and a classified statement of financial position at December 31, 2020.

On December 1, 2020, Cambridge Printers had the account balances shown below.

	Debit		Credit
Cash	£ 4,650	Accumulated Depreciation – Equipment	£ 1,500
Accounts Receivable	3,900	Accounts Payable	3,000
Inventory	1,950 (3,000 x £0.65)	Owner’s Capital	27,000
Equipment	21,000
	£ 31,500		£ 31,500

The following transactions occurred during December.

December 3: Purchased 4,000 units of inventory on account at a cost of £0.72 per unit.

December 5: Sold 4,400 units of inventory on account for £0.92 per unit. (It sold 3,000 of the £0.65 units and 1,400 of the £0.72.).

December 7: Granted the December 5 customer £184 credit for 200 units of inventory returned costing £144. These units were returned to inventory.

December 17 Purchased 2,200 units of inventory for cash at £0.78 each.

December 22 Sold 2,000 units of inventory on account for £0.95 per unit. (It sold 2,000 of the £0.72 units.)

Adjustment data: 1) Accrued salaries payable £400. 2) Depreciation £200 per month.

Answer 1

This solution comprises income statement and statement of financial position as on 31 december 2020..
2. Date: Page statement financial position ( as at 310ee + 2020 Amat Assest Amount Liabilities: Cash H728 Accumulated Account Relivble 3900 Depreciation Inventory Equipment 2lovo Account payable 3400 Oldnercopitel274 24528 os deux -10xx (2472) 29628 29628 A Working :- A calaulation of Cash opening Cash Add- gales Lesso purchant $ 4650 4674 (9596) & 4728

Date: Page: Income statement for Dee 2820 Particulars Amount partialaus Amount ToInventory 11950 By sales 4674 To puchar! 459 By bross. Los 1972 16546 6446 24.72 Te GIZORA 1088 1872 By Nertos / To salaries payable To bepzieciation 200 2472 리 그리구리

3 Working Coluulatim of purchase December 5 4000 Unit X 0.72 17 2200 unit x 0.78 2880 1716 4596 calculation of sales' December 5 3000 unit X0.65 1400 unit xo.72 1950 22 2000 unit yo.95 4858 Lean' sales Return (Roounit) 184 Wersales (62evunit) 4674