1. Salary Expense
Mar 26 Cash $7500
$7500
Dec 31 P&L $7500
$7500
Utility Expenses
Mar 26 Cash $1500
$1500
Dec 31 P&L $1500
$1500
Warehouse Building
Mar 30 Cash $30000
$30000
Jan 1 Bal b/d $30000
Dec 31 Bal c/d $30000
$30000
Bank Loan
Dec 31 Bal c/d $50000
_______
$50000
Apr 12 Cash $50000
______
$50000
Jan 1 Bal b/d $50000
Sales Revenue
Dec 31 P&L $50000
______
$50000
May 17 Cash $26000
May 22 Debtor $11000
Nov 19 Cash $13000
$50000
Creditor
Jul 14 Inventory $2000
Jul 16 Cash $8000
Sep 6 Cash 1800
Sep 6 Discount Exp $200
$12000
May 17 Inventory $12000
______
$12000

2. Debtor
May 22 Sales $11000
______
$11000
Jan 1 Bal b/d $1900
Aug 9 Sales Return $4000
Sep 20 Cash $5000
Discount Exp $100
Dec 31 Bal c/d $1900
$11000
Drawings
May 31 Cash $5000
$5000
Dec 31 Capital $5000
$5000
Interest Exp.
Jun 2 Cash $2000
$2000
Dec 31 P&L $2000
$2000
Cost of Goods Sold
May 17 Inventory $12000
May 22 Inventory $6700
Nov 19 Inventory $7200
$25900
Aug 9 Inventory $1900
Dec 31 P&L $24000
______
$25900
Sales Return
Aug 9 Debtor $4000
$4000
Dec 31 P&L $4000
$4000
Discount Revenue
Dec 31 P&L $200
$200
Sept 6 Creditor $200
$200
Discount Expense
Sep 20 Debtor $100
$100
Dec 31 P&L $100
$100

3. P&L Account
Dec 31 COGS $24000
Sales return $4000
Interest Exp $2000
Salary Exp. $7500
Utility Exp. $1500
Discount Exp. $100
Capital $11100
$50200
Dec 31 Sales Revenue $50000
Discount Rev. $200
______
$50200
Ms. Sheppard’s Bathroom Renovation Store
P&L Statement for the 12-months ended 31 Dec 2012
Revenue
Sales
Less: Sales Return
Net Sales
Less: Cost of Goods Sold
Cost of Goods Sold
Gross Profit
Add: Discount revenue
Adjusted Gross Profit
Less: Operating Expenses
1. General Expenses
Salary $7500
Utility Exp $1500
2. Financial Expenses
Interest Exp $2000
Discount Exp $100
Net Profit/(Loss)
$
$9000
$2100
$
$50000
($4000)
$46000
$24000
$22000
$200
$22200
$11100
$11100

4. Ms. Sheppard’s Bathroom Renovation Store
Balance Sheet as at 31 Dec 2012
$ $
OWNER’ EQUITY
Capital
Add: Net Profit
Less Drawings
Represented by:
ASSETS
Current Assets
Cash
Inventory
Debtor
Non-current Assets
Office Apartment
Warehouse Building
Total Assets
LIABILITIES
Non-current liabilities
Bank Loan
Total Liabilities
NET ASSETS
$166,200
$8,000
$1,900
$150,000
$30,000
$176,100
$180,000
$50,000
$300,000
$11,100
($5,000)
$306,100
$356,100
$50,000
$306,100