4.18 LO3/4/5/7 The following balances appeared in the records of James Golding’s furniture business at 31 May 2017:

$

Delivery truck 1 25,000 Delivery truck 2 15,000 Capital 300,000 Creditors 54,000 Premises 150,000 Loan from Mrs Golding (10%) 40,000 Inventory 90,000 Debtors 40,000 Rent receivable 2,000 Accrued administration expenses 1,400 Prepaid rates 2,000 Cash 71,400 Part of the premises are let to a firm of accountants at an annual rental of $24,000.

You are given the following data concerning the year to 31 May 2018:

1 Credit sales were $300,000.

2 $360,000 was paid to suppliers for goods purchased on credit.

3 Cash sales were $200,000.

4 Rent of $30,000 was received during the year.

5 On 30 November a new truck was purchased for $48,000; truck 2 was taken in part exchange at

$12,000 and it was agreed that the balance should be paid off at $1,000 per month starting 1 January. All payments were made on the due dates.

6 James Golding took inventory for his private use, goods which had cost $5,000, without paying for them.