Question
3 On 1 January 2016 the following balances of expenses, amongst others, stood in the books of B Baxter: Lighting and heating (Dr) $192. Insurance
3
On 1 January 2016 the following balances of expenses, amongst others, stood in the books of B Baxter:
- Lighting and heating (Dr) $192.
- Insurance (Dr) $1,410.
During the year ended 31 December 2016 the information related to these two accounts is as follows:
i) Fire insurance, $1,164 covering the year from 1 January 2016 to
31 May 2017 was paid.
ili) General insurance, $1,464 covering the year from 1 January
2016 to 31 July 2017 was paid.
i) An insurance rebate of $82 was received on 30 June 2016.
iv) Electricity bills of $1,300 were paid.
v) An electricity bill of $162 for December 2016 was unpaid as on
31 December 2016.
vi) Oil bills of $810 were paid.
TASKS:
- What is the amount accrued for lighting and heating, and amount prepaid for insurance at the year ended 31 December 2016?
- How much are the total expenses for lighting and heating and insurance respectively for the year ended 31 December 2016?
- Show how the Income Statement and Statement of Financial Position as at 31 December 2016 are affected, after all adjustments have been made, from the information above.
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