QUESTION 1: INCOME STATEMENT AND GAAP PRINCIPLES …
QUESTION 1: INCOME STATEMENT AND GAAP PRINCIPLES (52 marks; 42 minutes) 1.1 MM TRADERS Information from the records of MM Traders (with partners M. Malan and M. Mofokeng) for the financial year ended 28 February 2019 is provided. REQUIRED: 1.1.1 Prepare the Income Statement (Statement of Comprehensive Income) for the financial year ended 28 February 2019. (47) INFORMATION: Optional: RIGHT CLICK ON THE BUTTON AND OPEN IN A NEW TAB TO DOWNLOAD THE PRE-ADJUSTMENT TRIAL BALANCE Extract from the Pre-Adjustment Trial Balance on 28 February 2019 BALANCE SHEET SECTION Debit Credit Trading stock 81 500 Debtors control 892 450 Provision for bad debts (1 March 2018) 2 750