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  3. sophia owns and operates p&g co., an online st

Sophia owns and operates P&G Co., an online store that sells candles. She has provided...

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Accounting

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Sophia owns and operates P&G Co., an online store that sells candles. She has provided you the following information for the year ended 30 June 2021. Trial Balance For the year ended 30 June 2021 Debit Credit $500,000 $138,000 8,900 14,800 100,000 6,500 69,000 10,000 8,220 Account Share capital Investments Cash at bank Accounts receivable Computers Accumulated depreciation - computers Equipment Accumulated depreciation - equipment Accounts payable Premises Mortgage Retained earnings (1 July 2020) Sales revenue Sales returns and allowances Cost of goods sold Office wages Administrative expenses Bad debts expense Website maintenance expense 670,000 450,000 44,800 875,000 23,400 739,600 75,000 35,000 1,600 Insurance 12,220 7,000 1,894,520 1,894,520 You are required to: (i) Prepare the statement of profit or loss from the above information for the year ended 30 June 2021. (9 marks) (ii) Calculate retained earnings as on 30 June 2021. (6 marks)

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