Question
accurate steel pty ltd maintains inventory on a perpetual basis and advises you of the following the following adjustments are required to be completed for
accurate steel pty ltd maintains inventory on a perpetual basis and advises you of the following
the following adjustments are required to be completed for the year ended 30 June 2018
- further bad debts of $2,000 plus GST $0 except from GST to be written off
- allowance provision for doubtful debts to be increased to 5% of accounts receivable balance
- annual insurance premium of $3,600 (gst exclusive) was paid on feb 1,2018 accounts for the amount that has been prepaid at 30 June 2018
- Salaries and wages to be accrued at 30 June 2018 is $9,800
- Rental income received in advanced $600
- Depreciation for the year (not recorded in the accounts) was Motor vehicle $15,500 Furniture & fittings $4,500
Required
from the above information and the trial balance below
a) a prepare the necessary general journal entries for the above balance day adjustments
b) prepare classified income statement for the year ended 30 June 2018
c) prepare classified Balance sheet as at 30 June 2018
NOTE the perpetual inventory system is used
Trial Balance as at 30 June 2018
DR CR
Inventory 20,000
accounts receivable 13,400
allowance for doubtful debts 340
Bank 10,600
Land and Building 87,200
Furniture and fittings 16,800
accumulated depreciation furniture 5,100
Motor vehicle 70,860
accumulated deprecation motor vehicle 28,000
accounts payable 9,020
GST Payable 3,000
Mortgage 21,000
Capital 136,000
Drawings 9,800
Sales 97,000
Rental Income 3,600
Interest income 800
Cost of good sold 36,000
advertising 2,400
Insurance 5,000
Lease expense 1,300
Postage 400
Salaries 28,900
Bad debts 1,200
303,860 303,860
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