Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Drive 8:01 PM Sun 22 Aug 2. Sunrise Company was set up on April 1, 2019. Its Unadjusted trial balance on April 30, 2019 was

image text in transcribed
image text in transcribed
Drive 8:01 PM Sun 22 Aug 2. Sunrise Company was set up on April 1, 2019. Its Unadjusted trial balance on April 30, 2019 was as follows: Sunrise Company Limited Unadjusted Trial Balance, April 30, 2019 Description Debit (RS) Credit (RS) Buildings 375,000 Office equipment 300,000 Office supplies 53,500 Trade receivables 41,000 Cash 15.750 Prepaid rent 90,000 Trade payables 25,500 40,000 500,000 25,000 Unearned revenue Share capital Dividends Revenue from services Salaries expense Electricity expense 421,750 77,500 9,500 Total 987,250 987,250 The following additional information is available: (a) Services for Rs 22,500 were provided to customers in April although no bills have been raised (b) Salaries of staff for the second fortnight totaling Rs 77,500 have not been paid. (c) The inventory of office supplies on March 31 is Rs 24,250. (d) The building is expected to be useful for 10 years and the office equipment Drive 8:02 PM Sun 22 Aug Revenue from services 421,750 Salaries expense 77,500 Electricity expense 9,500 Total 987,250 987,250 The following additional information is available: (a) Services for Rs 22,500 were provided to customers in April although no bills have been raised (b) Salaries of staff for the second fortnight totaling Rs 77,500 have not been paid. (c) The inventory of office supplies on March 31 is Rs 24,250. (d) The building is expected to be useful for 10 years and the office equipment has an estimated useful life of four years. None of these assets are expected to have any salvage value. (e) Services for Rs 18,000 were provided to customers who had made full advance payments () The company paid six month's rent as advance on April 1. (e) The telephone company sent a bill for Rs 12,000 for April after the close of the month's transactions Required: A. Prepare adjusting entries and post them to "T" accounts. - 25 Marks B. Prepare the April adjusted trial balance, balance sheet and statement of profit and loss. - 30 Marks 3. Modern Furniture Company sold 2,250 Tables during 2019 at Rs 40,000 each. It had a beginning inventory on January 1, 2019 of 500 tables at a cost of Rs 25,000 each. The following purchases were made during the year ended December 31, 2019: March 500 tables @ Rs 27,500; June 250 tables @ Rs 30,000; August 750 tables @ Rs 32,500, November 500 tables @ R$ 35,000. The company uses the periodic inventory system. Required: A. Prepare a schedule to compute the cost of goods available for sale during the year. B. Determine the ending inventory on December 31, 2019 and cost of goods sold using (a) FIFO, (b) LIFO and (c) WAC - 10 Marks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting IFRS Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

2nd Edition

1118443969, 978-1118443965

More Books

Students also viewed these Accounting questions

Question

8. Explain how to price managerial and professional jobs.

Answered: 1 week ago

Question

1. What is the difference between exempt and nonexempt jobs?

Answered: 1 week ago