Answer to Question #287341 in Accounting for Brai

Question

 

 

The following additional information as at 31 December 2021 is available.

 

i.] Stock as at the close of business had been valued at cost at TZS. 4,200,000.

ii.] Wages and salaries need to be accrued by TZS. 80,000.

iii.] Other operating expenses are prepaid by TZS. 30,000.

iiii.] Depreciation for the year ended 31 December 2021 has still to be provided in the books as follows:

• Equipment: 10 percent per annum using the straight line method.

 

Required:

Prepare BON’s Income Statement for the year ended 31 December 2021

Answer 1

Let's say the revenue was 6,000,000 and the initial cost of the equipment was 80,000.