income statement
PART B Your next task is to prepare a detailed Classified Income Statement for the period ending 30 June, 2020 with reference to the General Journal adjustments in Part A. I SUNTORY LTD Income Statement for the year ended 30 June 2020 View Sec 1 Pages: 4 of 7 Words: 3 of 847 PEO ED $ 4 5. & 7 6. 8 19 u as at 30 June 2020 Account Debit Credit $1 340 000 10 000 92 000 40 000 220 000 400 000 $204 000 800 000 140 000 100 000 109 900 Share capital First Call Retained earnings Accounts payable Bank overdraft (current) Mortgage payable Land Buildings Accumulated depreciation - buildings Motor Vehicles Accounts receivable Provision for doubtful debts Inventory (1 July 2019) Investments Sales Interest revenue Sales returns & allowances I Purchases Freight inwards Salaries Directors Fees Commission expense Interest expense Delivery expense General expenses 2 000 300 000 800 000 504 000 35 000 5 000 261 000 3 000 93 800 6 000 2 000 20 000 4 000 54 300 $2 773 000 52 773 000 Sec 1 Pages: 2 of 7 Words: 3 of 847 PSG ger 44 $ % 5. & Suntory Ltd transactions during 2019/2020: Write off bad debts for the period ending 30 June, 2020 $1 925 Record income tax expense and current tax liability of $18 000. Declare a final dividend, 530 000. No ratification of this dividend is needed. An amount of $20 000 is to be transferred to a general reserve from retained earnings. UOWCA-WUCB 104-EXSF Page 2 of 7 I . Suntory Ltd's end of financial year adjustments: Provide for annual depreciation charges at 5% p.a. on cost of buildings for the whole year. Motor vehicles were purchased on March 1, 2020. Provide for the partial year depreciation charge using the following information; 1. Cost $100 000 2. Residual value S10 000 3. Useful life 5 years 4. Sum of the years digits depreciation method is to be used. Soc 1 Pages: 2 of 7 Words: 3 of 847 e ? TR 4 F % & A-WUCB104-EXSF Page 2 of 7 Suntory Ltd's end of financial year adjustments: Provide for annual depreciation charges at 5% p.a. on cost of buildings for the whole year. Motor vehicles were purchased on March 1, 2020. Provide for the partial year depreciation charge using the following information; 1. Cost $100 000 2. Residual value $10 000 3. Useful life 5 years 4. Sum of the years digits depreciation method is to be used. Record the estimated Bad debts expense of 0.5% for the year ending 30 June, 2020 based on the percentage of net eredit sales method. (NB; All Suntory Ltd. sales are on a credit basis) PART A- Adjusting entries . Note: No adjusting entry is made for beginning and ending inventory. Under the periodic 1 Pages 2 of 7 Words 3 of 847 PEG A F5 F7 FB
