Assessable Homework 3 Question

TOTAL MARKS = 30 marksdivide by 6 to get a % out of 5%

Question 1

The following account balances are provided for Holland Pty Ltd at 30 June 2020. Revenue and expense accounts cover the financial year ending on that date.

Accounts payable	20,000	Loan payablelong term	110,000
Accounts receivable	48,600	Office Equipment	14,000
Accumulated depreciationoffice equipment	2,000	Office expenses	15,200
Advertisement expense	7,800	Prepaid insurance	1,400
Cash at bank	50,000	Retained earnings (beginning of year)	15,800
Cost of sales	64,000	Salaries expense	28,000
Depreciation expense	2,000	Sales revenue	120,000
Inventory	40,000	Share Capital	76,400
Land	75,000	Unearned service revenue	1,800

• Prepare the Income Statement for Holland Pty Ltd for the year ended 30 June 2020. (8 marks)

Holland Pty Ltd

Income Statement for the year ended 30 June

	$	$

• Prepare a complete classified Balance Sheet using the narrative (report) format at 30 June 2020. (22 marks)

Balance Sheet of Holland Pty Ltd

at 30 June 2020