5.4 Changes to Income Statement/Balance Sheet

How does BDA affect the income statement?

only values changed; no new entries

How does BDA affect the balance sheet?

new entries to CA/CL

Lee is a sole trader. The following balances were extracted from her books on 31 December 2023.

	Dr	Cr
	$	$
Capital as at 1 January 2023		116 800
Drawings	22 000
Purchases	102 000
Sales		350 100
Interest received		2 900
Staff salaries	120 200
Rent and Insurance	36 000
Interest expense	1 000
General expenses	6 300
Bank		18 000
Hire Purchase		50,000
Trade receivables	20 800
Trade payables		38 800
Inventory, 1 January 2023	44 100
Mortgage (January 2026)		120 000
Premises (at cost)	280 000
Motor vehicles (at cost)	64 200
	696 600	696 600

Additional information:

2.      The insurance includes $600 paid in advance for the next year.

3.      Staff salaries totalling $400 were still owing at 31 December 2023.

4.      Interest received of $700 was due but not received at 31 December 2023.

CHANGES TO INCOME STATEMENT:
Changes to __ __:
> i__ r__: (plus/minus) __ (amt)

other income, interest received, plus 700

Lee is a sole trader. The following balances were extracted from her books on 31 December 2023.

	Dr	Cr
	$	$
Capital as at 1 January 2023		116 800
Drawings	22 000
Purchases	102 000
Sales		350 100
Interest received		2 900
Staff salaries	120 200
Rent and Insurance	36 000
Interest expense	1 000
General expenses	6 300
Bank		18 000
Hire Purchase		50,000
Trade receivables	20 800
Trade payables		38 800
Inventory, 1 January 2023	44 100
Mortgage (January 2026)		120 000
Premises (at cost)	280 000
Motor vehicles (at cost)	64 200
	696 600	696 600

Additional information:

2.      The insurance includes $600 paid in advance for the next year.

3.      Staff salaries totalling $400 were still owing at 31 December 2023.

4.      Interest received of $700 was due but not received at 31 December 2023.

CHANGES TO INCOME STATEMENT:
Changes to __:
1. i__: (plus/minus) __ (amt)
2. s__: (plus/minus) __ (amt)

expenses, insurance, minus 600, salaries, plus 400

Lee is a sole trader. The following balances were extracted from her books on 31 December 2023.

	Dr	Cr
	$	$
Capital as at 1 January 2023		116 800
Drawings	22 000
Purchases	102 000
Sales		350 100
Interest received		2 900
Staff salaries	120 200
Rent and Insurance	36 000
Interest expense	1 000
General expenses	6 300
Bank		18 000
Hire Purchase		50,000
Trade receivables	20 800
Trade payables		38 800
Inventory, 1 January 2023	44 100
Mortgage (January 2026)		120 000
Premises (at cost)	280 000
Motor vehicles (at cost)	64 200
	696 600	696 600

Additional information:

2.      The insurance includes $600 paid in advance for the next year.

3.      Staff salaries totalling $400 were still owing at 31 December 2023.

4.      Interest received of $700 was due but not received at 31 December 2023.

CHANGES TO BALANCE SHEET:
Changes to __:
1. Add entry: p__ __; amt __
2. Add entry: a__ i__; amt __

CA, prepaid insurance, 600, accrued income, 700

Lee is a sole trader. The following balances were extracted from her books on 31 December 2023.

	Dr	Cr
	$	$
Capital as at 1 January 2023		116 800
Drawings	22 000
Purchases	102 000
Sales		350 100
Interest received		2 900
Staff salaries	120 200
Rent and Insurance	36 000
Interest expense	1 000
General expenses	6 300
Bank		18 000
Hire Purchase		50,000
Trade receivables	20 800
Trade payables		38 800
Inventory, 1 January 2023	44 100
Mortgage (January 2026)		120 000
Premises (at cost)	280 000
Motor vehicles (at cost)	64 200
	696 600	696 600

Additional information:

2.      The insurance includes $600 paid in advance for the next year.

3.      Staff salaries totalling $400 were still owing at 31 December 2023.

4.      Interest received of $700 was due but not received at 31 December 2023.

CHANGES TO BALANCE SHEET:
Changes to __:
1. Add entry: a__ __; amt __

CL, accrued expense, 400