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Leak-Stoppers LLC”

Required:
1. Draw up the following financial statements for “Leak-Stoppers LLC”.
a) Income statement for the year ended 31 December 2013, and
b) Balance sheet as at that date.
2. Write a report to accompany the financial statements, addressed to Mr
Mansoor explaining your application and treatment of the following accounting
aspects;
a) economic entity concept,
b) going concern concept – with regard to acquiring the lease,
c) accrual concept – with regard to the recognition of expenses and revenues,
d) matching concept with regard to accounting for non-current assets,
e) prudence (conservatism) concept with regard to doubtful debts,
f) a comment on his business’s performance (from the Income statement),
g) a comment on his business’s financial standing, from the Balance Sheet)

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