Income and Financial Position Statement

Complete an income statement and statement of financial position based on information provided. 3. Questions Use the trial balance provided below to answer both Question 1 and Question 2. Note that the accounts in the trial balance appear in no particular order. Next Generation Ltd Trial balance on 31 December 2019 Debit Credit £ £ Share capital 570,000 Property, plant, and equipment 2,100,000 Bank 195,000 Revenue 480,000 Rental income 35,000 Cost of sales 225,000 Salaries and wages 110,000 Insurance 28,000 Fuel 12,000 Telephone line charges 8,000 Interest income 24,000 Interest expense 71,000 Inventory 165,000 Accounts receivable 43,000 Accounts payable 182,000 Tax expense 17,000 Petty cash 2,000 Long-term loan 270,000 Short-term loan 15,000 Mortgage 1,400,000 TOTAL 2,976,000 2,976,000 Question 1 Using the information included in the trial balance provided, complete the income statement for Next Generation Ltd for the year ending 31 December 2019. Add any further line items as necessary within the template by pressing the Enter key. Refer to the notes included in Unit 2 of this module to assist you with completing this question. Start writing here, using the template below to complete this question: Next Generation Ltd Income statement for the year ended 31 December 2019 £ Gross profit Other income Selling, administrative, and general expenses Operating profit Profit before tax Net profit Question 2 Using the information included in the trial balance provided, complete the statement of financial position for Next Generation Ltd as at 31 December 2019. Assume that the business is keeping the net profit earned during the year as retained earnings, instead of paying it out to the shareholders. Add any further line items as necessary within the template by pressing the Enter key. Refer to the notes included in Unit 2 of this module to assist you with completing this question. Start writing here, using the template below to complete this question: Statement of financial position of Next Generation Ltd as at 31 December 2019 £ Non-current assets Current assets TOTAL ASSETS Non-current liabilities Current liabilities Owner’s equity TOTAL EQUITY AND LIABILITIES