Question
Complete the following worksheet (which has been reproduced in the answer space provided) for Davids Auto Repair for the year ended 30 June 2020. Additional
Complete the following worksheet (which has been reproduced in the answer space provided) for Davids Auto Repair for the year ended 30 June 2020.
Additional information to complete the worksheet:
- The equipment of $135,000 was purchased on 1 March 2020. The straight-line depreciation method is used with a useful life of 3 years and a scrap value of $5,400. No depreciation is ever recorded.
- All three casual employees worked 10 days in June 2020. The daily rate for casual employees is $300 each person. No wages are recorded or paid.
- The supplies on hand at 30 June 2020 were $1,300.
- The prepaid insurance balance represents the annual premium paid on 1 February 2020.
- $5,000 of unearned revenue has been earned by 30 June 2020.
| Davids Auto Repair Worksheet For the year ended 30 June 2020 | ||||||||||
|
| Trial Balance (Unadjusted) | Adjustments | Trial Balance (Adjusted) | Income Statement | Balance Sheet | |||||
| Account title | Debit | Credit |
|
|
|
|
|
|
|
|
| Cash at bank | 75,000 |
|
|
|
|
|
|
|
|
|
| Accounts receivable | 255,000 |
|
|
|
|
|
|
|
|
|
| Prepaid insurance | 3,600 |
|
|
|
|
|
|
|
|
|
| Supplies | 1,800 |
|
|
|
|
|
|
|
|
|
| Equipment | 135,000 |
|
|
|
|
|
|
|
|
|
| Accumulated depreciation-Equipment |
|
|
|
|
|
|
|
|
|
|
| Accounts payable |
| 5,400 |
|
|
|
|
|
|
|
|
| Unearned revenue |
| 6,300 |
|
|
|
|
|
|
|
|
| Wages payable |
|
|
|
|
|
|
|
|
|
|
| Bank loan (due in 2023) |
| 150,000 |
|
|
|
|
|
|
|
|
| Capital |
| 99,900 |
|
|
|
|
|
|
|
|
| Service revenue |
| 315,000 |
|
|
|
|
|
|
|
|
| Wages expense | 105,000 |
|
|
|
|
|
|
|
|
|
| Supplies expense | 1,200 |
|
|
|
|
|
|
|
|
|
| Depreciation expense Equipment |
|
|
|
|
|
|
|
|
|
|
| Insurance expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 576,600 | 576,600 |
|
|
|
|
|
|
| |
| Profit/(Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started