Question
Open Questions Question 1 . (60 points) The following trial balance has been extracted from the ledger of Mr Yousef, a sole trader. TRIAL BALANCE
Open Questions
Question 1. (60 points)
The following trial balance has been extracted from the ledger of Mr Yousef, a sole trader. | ||
TRIAL BALANCE AS AT 31 December 20X9 | ||
Dr | Cr | |
$ | $ | |
Sales | 138,000 | |
Purchases | 78,000 | |
Delivery expenses | 6,500 | |
Drawings | 20,200 | |
Prepayment for insurance | 3,300 | |
Postage and stationery | 7,700 | |
Advertising | 1,100 | |
Salaries and wages | 27,000 | |
Irrecoverable debts | 580 | |
Receivables | 15,000 | |
Payables | 6,000 | |
Cash on hand | 1,200 | |
Cash at bank | 11,500 | |
Inventory as at 1 January 20X9 | 14,500 | |
Equipment at cost | 37,500 | |
Accumulated depreciation | 12,800 | |
Capital | 47,280 | |
6% Loan |
| 20,000 |
Total | 224,080 | 224,080 |
The following additional information as at 31 December 20X9 is available. |
1 The bill for telephone expense is received quarterly in arrears. You have received a bill for a telephone expense on 1st of February in the amount of $450. |
2 Prepayment on Insurance was made on 1st of August 2019. |
3 $2,500 of delivery expenses represents delivery on purchases made and the rest is for the delivery of the products that we have sold |
4 Equipment has to be depreciated. The useful life of the Equipment is 10 years with the salvage value of $2,500. The method of depreciation is a declining balance method. |
5 The allowance for receivables has to be equal to 5% of Receivable balance |
6 Inventory at the close of business has been valued at $5,000 |
7. Salary for December of $3,100 has not been accrued by the accountant. |
8. The sales figure includes $2,000, for which the services have not actually been performed. |
9. Interest expense for the year was $700. |
10. The accountant forgot to show the receipt of cash of $1,000 from your customers. |
11. The Loan was obtained on 1st of November 20X9. No interest has been accrued. |
Required |
(a) Prepare a statement of profit or loss for the year ended 31 December 20X9 (30 points) |
(b) Prepare a statement of financial position as at that date. (30 Points) |
please write adjustment and final trial balance journal entries
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