The following is the Trial Balance of Delicious Desserts, a sole trader.

Delicious Desserts Trial Balance on June 30, 2016

$ $
Cash 13 476
5% Long Term Loan 20 000
Inventory July 1, 2015 5 590
Purchases and Sales 102 140 189 654
Electricity 3 754
Insurance 19 200
Mortgage Payable 50 000
Carriage Outwards 735
Bank Overdraft 1 345
Motor Expenses 2 456
Wages 24 783
Carriage Inwards 124
Bank Charges 180
Accounts Receivable and Accounts Payable 4 692 5 639
Equipment 40 000
Building 73 000
Furniture 36 000
Drawings 2 000
Purchases Returns 368
Sales Returns 290
Capital 45 391
Discounts Accounts 310 430
Commissions Received 1 903
Rent Received 12 000
Short term loan 2 000
328 730 328 730
NOTES
1. Amount owing for electricity is $400
2. Insurance prepaid $400
3. Inventory on June 30, 2016 is valued at $5 000
4. A note received from the bank explains that Delicious Desserts was charged too much bank
charges. The bank has since credited the Bank account with $34.
5. No interest has been paid on the Long Term Loan for the year.

Prepare for Delicious Desserts

(a) The Income Statement for the year ended June 30, 2016.
(b) The Balance Sheet as at June 30, 2016 (20 marks)