4

INDIVIDUAL

ASSESSMENT 1 (

100

marks)

Question

Jean Fit is the owner of Move

-

It, a distributor and retailer of home fitness equipment.

The

following trial balance has been extracted from

h

er

business

records

as

at

30 June

20

20

:

Unadjusted Trial Balance as at

30 June 2020

Account

Dr ($)

Cr ($)

Advertising expense

26,880

Salaries expense

157,320

Interest

expense

4,500

Returns

17,760

22,940

Drawings: Jean Fit

33,520

Capital: Jean Fit

400,000

Building, at cost

930,500

Equipment, at cost

425,800

Interest income

24,150

Trade payables

215,900

Accumulated depreciation as at 1 July 2019

-

Building

186,100

-

Equipment

106,450

Inventory as at 1 July 2019

183,600

Purchases

906,300

Commission

income

38,

9

20

Sales

2,067,100

Rent expense

148,

8

00

Cash at bank

94,560

Carriage inwards

20,600

Discounts

16,340

10,270

Insurance expense

63,600

Carriage outwards

23,450

Utilities expense

40,200

Trade receivables

278,100

6% Bank

loan, repayable in 2026

300,000

3,

371

,

8

3

0

3,371,

8

30

5

The following additional information was made available before the year

-

end closing

:

1.

Inventory as at

30 June

20

20

amounted to $

146

,

7

00

after a physical stock count

.

2.

$

15

,

9

00

was received in June 2020 for goods to be delivered in July 2020. This had been

recorded as

cash

sales for the year ended 30 June 2020.

3.

Utilities expense consisted of payment made from July 2019 to February 2020. Monthly

utilities

expense

is assumed to

r

emain constant during the current financial year.

4.

The bank loan was taken up on 1 January 2020. The outstanding interest on the loan for year

has not been accounted for as at year

-

end.

5.

R

ent for

the last two months of the

financial

year was paid by

Jean Fit

using her

personal

funds

.

The payments have been charged to rent expense and recorded as trade payables

.

Monthly

rent

remain

ed

constant

throughout

the current financial year

and there was no

outstanding rent to be paid as at year

-

end

.

6.

Insurance

expense includes payment of $

27

,

3

00 for

May

20

20

to

November

2020.

7.

In

April 2020

,

a credit customer

paid $68,400 in settlement of an outstanding amount

after deducting a 5% discount for prompt payment.

This transaction has been omitted in

the records of

Move

-

It

.

8.

Commission earned amounting to $9,

3

00 was received in September 2019 was recorded in

the cor

rect accounts at $9,0

3

0.

9.

The amount of annual depreciation on fixed assets were as follows:

Building

-

$

21,460

Equipment

-

$

13,720

10.

$

7,600

paid for

staff salaries in June 2020

was

erroneously charged to purchases

.

Required

(a)

Prepare the following financial statements for

Move

-

It

(i) Statement of Financial Position as at

30 June 202