Archie Andrews is the owner of Archie's Furnishing, a furniture shop in the city of Riverdale. Archie's Furnishing sells home and office furniture. The opening balances of assets (except for accumulated depreciation) and liabilities of the business as at 1 June 2021 are shown in the worksheet on page 3. As at 1 June 2021: The carrying amount of plant and equipment was $180,000. Accrued expenses of $48,000 include an amount of $42,000 relating to unpaid rental of March 2021, April 2021 and May 2021. Unearned revenue of $36,000 represents an advance payment in May 2021 from a customer, Veronica Lodge, for sales of a sofa set. During the month ended 30 June 2021, the following events/transactions occurred: Transferred $12,000 of office furniture from the store to be used by the business. June 1 4 Delivered the sofa set purchased by Veronica Lodge. Archie's Furnishings made a mark-up of 50% on this transaction. 7 Negotiated with a supplier to purchase $10,000 of home furniture in July 2021. 10 Paid 2 months of the overdue rental due to the threat of legal action by the landowners. Archie's Furnishings promised to pay all remaining rental by the end of July 2021. Purchased $25,000 of office furniture for resale. Payment will be made in 30 days' time. 14 17 Credit customers paid $80,000 of their amount owing to Archie's Furnishings. 21 Archie's Furnishings paid the owner's personal travelling expenses $1,000. 25 Paid $8,000 for June 2021 salaries. Estimated June 2021 utilities to be $6,000. The actual bill will be received in July 2021. 28 30 Furniture sales (excluding sales to Veronica Lodge) for June 2021 amounted to $125,000. All sales transactions were made on credit, and the business achieved a gross profit margin of 60% on these sales. All plant and equipment are assumed to have a useful life of 5 years with no residual value. Depreciation is to be calculated using the straight-line method. On 1 September 2020, Archie's Furnishing purchased a 12-months all-risks insurance plan to protect the assets of the business with effect from 1 October 2020. The prepaid expenses of $12,000 as at 1 June 2021 represents the unutilised portion of that all-risks insurance. A customer owing $5,000 to the business could not be located. Consequently, the amount is to be treated as bad debt. ACC10007 Financial Information for Decision Making Final Assessment Semester 1, 2021 Page 2 of 11 Required: (a) In the following Worksheet, (1) Enter the amounts for the opening balances marked (A) and (B). (ii) Enter all applicable transactions for the month of June 2021, including all necessary month-end adjustments. (132 marks) Date: Accounts Prepaid Plant and Accumulated Accounts Accrued Unearned Profit Cash Inventory Capital Notes June receivables expenses equipment depreciation payables expenses revenue & Loss 78,000 200,000 12,000 284,000 240,000 A 170,000 48,000 36,000 B Adjuetments Adi Adj Adj Adj Adi Total (b) Prepare a properly classified Statement of Comprehensive ncome for the month ended 30 June 2021. (5 marks) (c) Prepare a properly classified Statement of Financial Position as at 30 June 2021. (4 marks)