Prepare the Statement of Comprehensive Income (Income Statement) of CR Traders for the financial year ended 30 June 2019.

Sales are adjusted for sales returns.

$$\text{Adjusted Sales} = \text{Sales (Trial Balance)} - \text{Sales Returns (Adjustment ii)}$$ $$\text{Adjusted Sales} = \text{R}340\,230 - \text{R}1\,200 = \text{R}339\,030$$

Cost of sales is adjusted for the cost of goods returned.

$$\text{Adjusted Cost of Sales} = \text{Cost of Sales (Trial Balance)} - \text{Cost of Sales for Returns (Adjustment ii)}$$ $$\text{Adjusted Cost of Sales} = \text{R}165\,200 - \text{R}800 = \text{R}164\,400$$

• Rent income (Adjustment x): The rent increased by 10% on 1 May. Rent for July 2019 was received in advance. Let $x$ be the monthly rent before May. Total rent received = (10 months $\times x$) + (2 months $\times 1.1x$) + (1 month $\times 1.1x$) $$\text{R}99\,750 = 10x + 2.2x + 1.1x = 13.3x$$ $$x = \frac{\text{R}99\,750}{13.3} = \text{R}7\,500$$ Rent income for the year (12 months) = $10 \times \text{R}7\,500 + 2 \times (\text{R}7\,500 \times 1.10) = \text{R}75\,000 + \text{R}16\,500 = \text{R}91\,500$.
• Interest on fixed deposit: R6 000 (from Trial Balance).
• Commission income: R28 593 (from Trial Balance).
• Bad debts recovered (Adjustment viii): R1 720.

$$\text{Total Other Income} = \text{R}91\,500 + \text{R}6\,000 + \text{R}28\,593 + \text{R}1\,720 = \text{R}127\,813$$

• Salaries (Adjustment v): R82 500 (TB) + R8 700 (June salaries) = R91 200.
• Employers contribution (Adjustment v): R4 700 (TB) + R300 (June contribution) = R5 000.
• Water and electricity (Adjustment i): R6 900 (TB) + R334 (accrued) = R7 234.
• Telephone (Adjustment i): R3 420 (TB) + R478 (accrued) = R3 898.
• Insurance (Adjustment iv): Expense for 10 months (Jul-Apr): $10 \times \text{R}400 = \text{R}4\,000$. Expense for 2 months (May-Jun): $2 \times (\text{R}400 + \text{R}40) = 2 \times \text{R}440 = \text{R}880$. Total insurance expense for the year: $\text{R}4\,000 + \text{R}880 = \text{R}4\,880$.
• Bad debts expense (Adjustment vii): Bad Debts (TB): R11 400. Bad debts written off (D. Danel): R1 300 - ($R1\,300 \times 0.30$) = R1 300 - R390 = R910. Debtors allowance (TB, treated as expense): R6 600. Total bad debts expense: $\text{R}11\,400 + \text{R}910 + \text{R}6\,600 = \text{R}18\,910$.
• Depreciation (Adjustment vi): Vehicles: $(\text{R}484\,000 - \text{R}260\,000) \times 15\% = \text{R}224\,000 \times 15\% = \text{R}33\,600$. Equipment: $(\text{R}291\,000 - \text{R}5\,000) \times 10\% + \text{R}5\,000 \times 10\% \times \frac{6}{12} = \text{R}28\,600 + \text{R}250 = \text{R}28\,850$. Total depreciation: $\text{R}33\,600 + \text{R}28\,850 = \text{R}62\,450$.

$$\text{Total Operating Expenses} = \text{R}91\,200 + \text{R}5\,000 + \text{R}7\,234 + \text{R}3\,898 + \text{R}4\,880 + \text{R}18\,910 + \text{R}62\,450 = \text{R}193\,572$$

• Interest on loan (Adjustment ix): Loan amount: R30 000. Rate: 12%. Period: 10 months (1 Sept 2018 to 30 June 2019). $$\text{Interest expense} = \text{R}30\,000 \times 12\% \times \frac{10}{12} = \text{R}3\,000$$
• Interest on overdraft (Adjustment xi): R700.

$$\text{Total Finance Costs} = \text{R}3\,000 + \text{R}700 = \text{R}3\,700$$