C19 Simon is a sole trader, supplying stationery to local offices. He prepares his financial statements to 30 June each year. At 30 June 2020, his trial balance was as follows: Dr Cr Capital at 1 July 2019 27,775 Purchases 152,250 Sales revenue 312,500 Sale Returns 1,150 Purchase Returns 850 Discounts allowed 1,500 Discounts received 2,500 Inventory of stationery at 1 July 2019 29,200 Packaging purchased 7,900 Transport costs 7,000 Rent and rates 3,100 Insurance 1,000 Telephone 1,200 Car expenses 2,400 Wages 41,700 Provision for doubtful debts at 1 July 2019 1,000 Heat and light 850 Sundry expenses 3,200 Delivery vehicles - cost 112,500 Delivery vehicles - depreciation at 1 July 2019 35,000 Equipment -cost 15,000 Equipment - depreciation at 1 July 2019 5,000 Trade receivables and payables 45,000 82,000 Loan 10,000 Loan repayments 6,400 Bank deposit account 9,000 Bank current account 36,275 476,625 476,625 The following additional information at 30 June 2020 is available: 1. Closing inventory of stationery 35,300 Closing inventory of packing materials 700 There was also an unpaid invoice of 200 for packing materials received and consumed during the year. It is not included in Cost of Sale. 2. Prepayments: - rent and rates 250 - insurance 200 3. 4. 5. 6. 7. Accrued expenses - heat and light 400 - telephone 500 Wages includes 18,800 cash withdrawn by Mrs Simon. Trade receivables have been analysed as follows: Current month 20,000 30 to 60 days 10,000 60 to 90 days 12,000 over 90 days 3,000 and provision is to be made for doubtful debts as follows: 30 to 60 days 1 % 60 to 90 days 2.5% over 90 days 5% (after writing off 600) Sundry expenses include 350 for Simon's personal tax bill. The loan was taken out some years ago, and is due for repayment on 31 March 20X5. The figure shown in the trial balance for loan repayments includes the yearly interest charge of 400. The Bank deposit account was opened on 1 January 2019 as a short-term investment. Interest is credited at 31 December annually, the average rate of interest since opening the account has been 6% per annum. At 1 July 2019, Simon decided to bring one of his family cars, valued at 5,000, into the business. No entries have been made in the business books for its introduction. Depreciation is to be provided as follows: at 20% on cost for delivery vehicles; at 25% on the reducing balance for the car; at 25% on the reducing balance for equipment. 8. 9. 10. Required 1) Prepare an income statement for Simon for the year ended 30 June 2020. 2) Prepare a statement of financial position at 30 June 2020. 3) Complete the working tables