Question 3.2: On January 1, 20X7, J.A. Ltd started a business trading as a...

On January 1, 20X7, J.A. Ltd started a business trading as a grocery shop and using a rented truck which he drove around.

1. J.A. Ltd rented the truck at a cost of $1500 for five months. The running expenses for the truck were $300 per month.
2. J.A. Ltd hired a part-time worker at a cost of $150 per month.
3. J.A. Ltd borrowed $3000 from the bank, at an interest of $30 per month.
4. For the four months until 31 May 20X7, the total sales made consisted of cash sales of $15,500 and credit sales of $1500.
5. From January 1st, 20X7 to May 31st, 20X7 the purchases from the producers were $7000 and had sold every item. He also made a payment for purchases on credit of $1000 to the producer.
6. J.A. Ltd’s office telephone and postage expenses for the total five months up to May 31st, 20X7 was $250.
Required: Prepare the income statement for the period.