Reference no: EM13389169

The following is the statement of financial position of TT Ltd. at the end of the first year of trading

Statement of Financial Position as at 31^st December 2013

Current Assets
Cash At Bank	$750
Prepaid Expenses	$5 300
Accounts Receivable	$19,600
Inventory	$65,000
		$90,650
Non-Current Assets
Motor Vehicles- Cost	$12,000
Accumulated Depreciation	($2,500)
		$9,500
TOTAL ASSETS		$100,150
Current Liabilities
Accrued Expenses	$1,250
Accounts Payable	$22,000
		$23,250
Owner's Equity
Original	$50,000
Retained Profit	$26,900
		$76,900
Total Liabilities And Owner's Equity		$100,150

• Prepaid expenses included $5,000 for rent and $300 for rates.
• Accrued expenses included wages of $630 and electricity of $620.

During 2014, the following transactions took place:

• The owner's withdrawal capital In the form of cash of $20,000

• A premise continues to be rented at an annual rental of $20,000. During the year, rent of $15,000 was paid to owner of the premises.

• Rates on the premises were paid during the year for period 1^stApril 2014 to 31^stMarch 2015, $1,300.

• A second delivery vehicle was bought on 1st January for $13,000. This is expected to be used in business for four years and then be sold for $3,000.

• Wages totalling $36,700 were paid during the year. At the end of the year the business owed $860 of wages for the last week of the year,

• Electricity bills totalling $1,820 for the first three quarters of the year were paid. After 31^stDecember 2014, once the accounts had been finalised for the year, the bill for the last quarter arrived showing a charge of $690.

• Inventory totalling $67,000 was bought on credit.

• Inventory totalling $8,000 was bought for cash.

• Sales on credit totalled $179,000 (cost $89,000).

• Cash sales totalled $54,000 (cost $25,000).

• Receipts from accounts receivable totalled $178,000.

• Payments to accounts payable totalled $71,000.

• Vehicle running expenses paid totalled $16,200.

REQUIRED

Prepare a Statement of Financial Position as at 31st December 2014 and a Statement of Comprehensive Income for the year to date.