Use the balances/totals from the given trial balance of Cola Stores January 2017 to complete the following: 6.1 Compile an income statement. 6.2 Compile ONLY the asset section of the balance sheet.

6.1 Compile an income statement. To compile the income statement, we identify all revenue and expense accounts from the Nominal Accounts Section of the trial balance. We also need to calculate the missing Salaries figure to balance the trial balance. Step 1: Calculate the missing Salaries expense. The total debits and credits in the trial balance must be equal (R681 900). We sum all known debit balances and subtract this from the total debit to find the missing Salaries amount. Known Debit Balances: Drawings: R40 500 Land and buildings: R45 000 Vehicles: R43 000 Equipment: R12 000 Trading stock: R50 200 Debtors' control: R25 400 Bank: R850 Petty cash: R1 550 Cost of sales: R205 000 Telephone: R10 800 Rent paid: R79 500 Water and electricity: R8 100 Insurance: R1 200 Bank charges: R45 500 Wages: R70 000 Sum of known debits: & 40\,500 + 45\,000 + 43\,000 + 12\,000 + 50\,200 + 25\,400 + 850 + 1\,550 \\ & + 205\,000 + 10\,800 + 79\,500 + 8\,100 + 1\,200 + 45\,500 + 70\,000 \\ & = R638\,600 Salaries = Total Debits - Sum of known debits Salaries = R681\,900 - R638\,600 = R43\,300 Step 2: Compile the Income Statement. We list revenues, subtract cost of sales to get gross profit, add other income, and then subtract all operating expenses to find the net profit or loss. Cola Stores Income Statement for the month ended 31 January 2017 | Item | Amount (R) | Amount (R) | | :-------------------- | :--------- | :--------- | | Sales | | 299 900 | | Less: Cost of Sales | | (205 000) | | Gross Profit | | 94 900 | | Add: Other Income | | | | Commission received | 18 700 | | | Rent received | 28 900 | 47 600 | | Less: Operating Expenses | | | | Telephone | 10 800 | | | Rent paid | 79 500 | | | Water and electricity | 8 100 | | | Insurance | 1 200 | | | Bank charges | 45 500 | | | Wages | 70 000 | | | Salaries | 43 300 | (258 400) | | Net Loss | | (115 900) | The net loss for the month is R115 900. Net Loss: R115 900 6.2 Compile ONLY the asset section of the balance sheet. To compile the asset section, we identify all asset accounts from the Balance Sheet Section of the trial balance. Assets typically have debit balances. The "Cash float" account has a credit balance (R34 400), which indicates it is a liability in this context, not an asset, so it will be excluded from the asset section. Step 1: List Non-current Assets. Non-current assets are long-term assets. Land and buildings: R45 000 Vehicles: R43 000 Equipment: R12 000 Step 2: List Current Assets. Current assets are short-term assets expected to be converted to cash or used within one year. Trading stock: R50 200 Debtors' control: R25 400 Bank: R850 Petty cash: R1 550 Step 3: Compile the Asset Section of the Balance Sheet. Cola Stores Balance Sheet (Extract) as at 31 January 2017 | Item | Amount (R) | Amount (R) | | :-------------------- | :--------- | :--------- | | ASSETS | | | | Non-current Assets | | | | Land and buildings | 45 000 | | | Vehicles | 43 000 | | | Equipment | 12 000 | | | Total Non-current Assets | | 100 000 | | Current Assets | | | | Trading stock | 50 200 | | | Debtors' control | 25 400 | | | Bank | 850 | | | Petty cash | 1 550 | | | Total Current Assets | | 78 000 | | Total Assets | | 178 000 | The total assets are R178 000. Total Assets: R178 000 What's next? 📸