Question
On Time Ltd is a parcel delivery business. Detailed below is selected information for the financial year ending 30 June 2018. Item $ Interest paid
On Time Ltd is a parcel delivery business. Detailed below is selected information for the financial year ending 30 June 2018.
Item
$
Interest paid for the year
4,000
Dividends paid to Shareholders
30,000
Profit on sale of truck
25,000
Cash at bank at July 1, 2017
1,000,000
Depreciation for the year
150,000
Payment for Motor vehicle purchased on 28th April 2018
40,000
Loan repayments made
70,000
Tax expense / paid to the Tax Office
78,000
Salaries Paid
250,000
Cash received from the sale of a truck
90,000
Delivery Income - Cash Receipts for year ending 30 June 2018
650,000
Dividend received from investment
200,000
Cash for Shares in companies listed on the ASX (Australia Security Exchange)
50,000
Cash received from accounts receivable customers
300,000
Bad Debts expense
10,000
Other cash operating expenses
77,000
Credit purchases of fuel for the year ending 30 June 2018
480,000
Fuel Stock - petrol 1/7/2017
400,000
Fuel Stock - petrol 30/6/2018
150,000
Payments to suppliers for prior purchases on credit
200,000
Delivery Income- On Credit to account customers for the year ending 30 June 2018
150,000
Money borrowed from Net Bank
50,000
Purchase of property and land for cash
700,000
REQUIRED
(a)Prepare a fully classified income statement and cash flow statement for the year ending 30 June 2018 based on the information above. Fully state any assumptions you have made in preparing these financial reports.
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Understanding Financial Accounting
Authors: Christopher D. Burnley
2nd Canadian Edition
1119406927, 978-1119406921
