Case

Study

Donald's Juice Shop had the following balances in its ledger at 30 June

2020.

Account

Amount ($)

Cash at Bank

$48 724

Accounts Receivable

$2 05 056

Inventory

$2 91 200

Prepaid Insurance

$15 744

Office Supplies on Hand

$8 736

Furniture & Fixtures

$1 06 080

Accumulated Depreciation - Furniture & Fittings

$29 120

Delivery Equipment

$1 24 800

Accumulated Depreciation - Delivery Equipment

$49 920

Accounts Payable

$72 072

Loan Payable

$3 12 000

Donald, Capital

$1 32 284

Donald, Drawings

$75 240

Sales

$19 22 800

Sales Returns & Allowances

$26 664

Discount Allowed

$18 200

Cost of Sales

$10 99 488

Freight In

$24 960

Discount Received

$22 464

Sales Salaries Expense

$1 82 208

Delivery Expense

$48 800

Advertising Expense

$71 760

Rent Expense

$76 400

Office Salaries Expense

$90 000

Electricity Expense

$26 600

Donald's

Juice Shop financial year ends on 30 June. During the year the accountant

prepared monthly statements using worksheets, but no adjusting entries were

made in the journals and ledgers. Data for the year-end adjustments are as

follows.

1.

Expired insurance, 30 June 2020, $2624.

2.

Office supplies on hand, 30 June 2020, $4088.

3.

Depreciation expense for year, furniture and fixtures, $9640.

4.

Depreciation expense for year, delivery equipment, $26 460.

5.

Sales salaries payable but unrecorded, $6400.

6.

Office salaries payable but unrecorded, $1760.

Required

(a)Prepare worksheet for the year ended 30 June

2020.

(b)Prepare income statement for the year ended

30 June 2020.

(c)Prepare balance sheet as at 30 June 2020.

(d)Make the necessary adjusting entries.

(e)Make the closing entries.

(f)Make any

necessary reversing entries.

(g)Do you think Donald's Juice Shop is in good

financial position? Analyse and explain.