Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Part 1 - Answer the following question Question 1 (40 marks) A-Henri Macon is a Juice merchant trading from a single shop. Here is his
Part 1 - Answer the following question Question 1 (40 marks) A-Henri Macon is a Juice merchant trading from a single shop. Here is his trial balance as at 30 September 2019. Trial balance for Henri Macon as at 30 September 2019 Debit Credit Capital Drawings 38,600 Bank loan 32,000 Cash at bank 100,000 70,600 Equipment at cost 10,000 Accumulated depreciation- Equipment 4,750 Fixtures at cost 70,000 Accumulated depreciation-Fixtures 33,250 Receivables 186,000 Allowance for receivables 4,000 Payables 210,000 Inventory (as at 1 October 2018) 72,000 Sales 744,000 Purchases 640,000 Insurance 3,600 Rent 20,000 Loan interest 15,000 Miscellaneous expenses 15,400 Total 1.134,600 1,134,600 Additional information is provided for use in preparing the company's adjustments: 1. The value of closing inventory is 136,000. 2. There is an accrual for rent of 4,000. 3. There is a prepayment of insurance of 400. 4. Office equipment has a useful life of four years and a residual value of 500. It is to be depreciated on a straight-line basis. 5. Fixtures are to be depreciated on the reducing balance basis at a rate of 20 per cent. 6. The Majestic Hotel is one of Henri's best customers. It has just been declared bankrupt. The hotel owes Henri 26,000. 7. The allowance for receivables is to be set at ten per cent of outstanding receivables as at 30 September 2019. Required: 1. Make the end-of-period adjustments entries (10.8 Marks) 2. Prepare Henri's income statement for the year ended September 30, 2019. (9.2 Marks) 3. Prepare Henri's balance sheet as at September 30, 2019. (10 Marks) B124/THE-Final (V2) Summer 2019/2020 Page 2 of 5
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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