The Statement of Financial Position as of December 31, 2021, would show Total Assets of $1,367,200, Total Liabilities of $335,000, and a Capital Employed of $1,032,200.
To prepare the Statement of Profit or Loss for the year ending December 31, 2021, we need to calculate the following:
1. Sales: $1,240,000
2. Purchases: $920,000
3. Opening Stock: $36,000
4. Returns Inwards: $9,400
5. Returns Outwards: $4,500
6. Closing Stock: $58,000
7. Wages and Salaries: $92,500
8. Discounts: $7,200
9. Loan Interest: $30,000
10. Commission Received: $35,000
To calculate the Gross Profit, we need to subtract the cost of goods sold from the net sales:
Net Sales = Sales - Returns Outwards
Cost of Goods Sold = Opening Stock + Purchases - Returns Inwards - Closing Stock
Gross Profit = Net Sales - Cost of Goods Sold
To calculate the Net Profit, we need to deduct the operating expenses from the Gross Profit:
Operating Expenses = Wages and Salaries + Discounts + Loan Interest + Commission Received
Net Profit = Gross Profit - Operating Expenses
Now let's calculate the values:
1. Net Sales = $1,240,000 - $4,500 = $1,235,500
2. Cost of Goods Sold = $36,000 + $920,000 - $9,400 - $58,000 = $888,600
3. Gross Profit = $1,235,500 - $888,600 = $346,900
4. Operating Expenses = $92,500 + $7,200 + $30,000 + $35,000 = $165,700
5. Net Profit = $346,900 - $165,700 = $181,200
Therefore, the Statement of Profit or Loss for the year ending December 31, 2021, would show a Net Profit of $181,200.
To prepare the Statement of Financial Position as at December 31, 2021, we need to calculate the following:
1. Capital: $635,000
2. Drawings: $25,000
3. Loan: $300,000
4. Creditors: $35,000
5. Debtors: $52,000
6. Provision for Bad Debts: $6,200
7. Land and Building: $740,000
8. Provision for Depreciation on Building: $74,000
9. Motor Vehicle: $300,000
10. Provision for Depreciation on Motor Vehicle: $45,000
11. Machinery and Equipment: $250,000
12. Provision for Depreciation on Machinery & Equipment: $25,000
13. Bank: $65,000
14. Cash: $12,200
To calculate the Total Assets, we need to add up all the assets:
Total Assets = Land and Building + Motor Vehicle + Machinery and Equipment + Bank + Cash
To calculate the Total Liabilities, we need to add up all the liabilities:
Total Liabilities = Loan + Creditors
To calculate the Capital Employed, we need to subtract the Total Liabilities from the Total Assets:
Capital Employed = Total Assets - Total Liabilities
Now let's calculate the values:
1. Total Assets = $740,000 + $300,000 + $250,000 + $65,000 + $12,200 = $1,367,200
2. Total Liabilities = $300,000 + $35,000 = $335,000
3. Capital Employed = $1,367,200 - $335,000 = $1,032,200
Therefore, the Statement of Financial Position as at December 31, 2021, would show Total Assets of $1,367,200 and Total Liabilities of $335,000, with a Capital Employed of $1,032,200.