XYZcom is a startup that builds high end BBQs for the consumermarket. They commence operations (rather conveniently) on the firstof July.

On the first of July they buy the equipment they need to producetheir range of BBQs. The equipment they purchase is:

BBQ stamping machine for $220,000
BBQ Seam welder for $25,000
The effective life of the equipment is 10 years.

1) Create a table or other tool you can use as an assetregister. Calculate the depreciation (diminishing value method) forthe first year and include it in your asset register.

This equipment can be entered in the asset register using the IDnumbers PR001 and PR002.

2)XYZcom pays $4,800 for 12 months insurance in July. Ratherthan recording the whole amount against July’s expenses, it wishesto show the expense equally across the periods for which it paidthe premium. In other words, rather than showing a $4,800 expensefor July it wishes to use prepayments to show a $400 expense in allmonths.Show the general journal transactions for July. The generaljournal transaction number is GL7, the insurance account is 6010,and the prepaid insurance 1945. The transaction is processed on the31st July.

3) One of XYZcom’s account customers, JZ House and Garden, hasgone broke, owing XYZcom $5,700. Prepare a worksheet showing theappropriate journal or ledger entries to write off the debt. Usethe docket number JZ345, move the debt into bad debts in April andfinalise the transactions on the 31st July. Before the write off,profit is 275,300.00. At the time of write off, theirs is the onlyreceivable and afterwards the only bad debt.

4) XYZcom, being a startup, had a zero beginning inventory. Theyspent $425,000 on inventory items, receiving $12,000 for promptpayment and paying $10,000 for freight. Their closing inventory is$84,000. Determine the cost of goods sold and the closing entriesfor a periodic inventory.

5) Prepare a trial balance, an income statement and a balancesheet using your calculations.
You will need the following information:
Sales were $1,181,200.00
Administrative and sales expenses $225,000.00
Interest on debt is $97,000.00
At the end of the period, XYZcom has the following accountbalances:
Cash 550,000
Accounts receivable 117,000
Inventory 84,000
Prepaid expenses 4,800
Equipment 196,000
Depreciation 49,000
Accounts payable 125,000
Loans payable 361,300
Net Profit 465,500

I just need assistance with part 5. I need help with the trialbalance, income statement and balance sheet.