Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Part A Balance Day Adjustments 14 Marks The following balances appeared in the accounting records of Modern Appliances Ltd on 30 June 2013. The company
Part A Balance Day Adjustments 14 Marks The following balances appeared in the accounting records of Modern Appliances Ltd on 30 June 2013. The company is registered for GST. You have been asked to prepare financial statement extracts after the balance day adjustments have been completed. $ 250 14,300 Modern Appliances Ltd Trial Balance as at 30 June 2013 (Extract) $ Accounts Receivable 21.380 Allowance for Doubtful Debts Term Deposit (5% p.a. matures 12,000 Rent Received 2018) Bad Debts 800 Interest Received Insurance 2,400 GST Payable Accumulated Depreciation on Delivery Vehicles 60,000 Delivery Vehicles Shop Equipment 45,000 Accumulated Depreciation on Shop Equipment 550 2.300 21,600 9,000 Additional Information: 1. Interest is owing on the term deposit. 2. A payment for insurance was made on 1 January 2013 for one year. $460 (including GST). 3. Rent has been received in advance, $1,265 (including GST). 4. Delivery Vehicles are to be depreciated by 20% p.a. using the diminishing value method. 5. Shop Equipment is to be depreciated by 10% p.a. using the straight-line method. 6. Accounts Receivable of $1,380 (including GST) is to be written off as bad debts. 7. The Allowance for Doubtful Debts is to be adjusted to 2% of outstanding Accounts Receivable. a) Prepare the Income and Expenses sections of the Statement of Comprehensive Income and the Note for the year ended 30 June 2013. Expenses must be fully classified. Modern Appliances Ltd Statement of Comprehensive Income (Extract) for the year ended 30 June 2013 Note $ Income Distribution Costs Administrative Expenses Note to the Statement of Comprehensive Income: 1. Other Income (7 Marks) b) Prepare the Current Assets and Non-Current Assets sections of the Statement of Financial Position (Balance Sheet) and the Notes as at 30 June 2013. Modern Appliances Ltd Statement of Financial Position (Balance Sheet) (Extract) as at 30 June 2013 Notes $ Current Assets Non-Current Assets (4 Marks) Notes to the Statement of Financial Position (Balance Sheet): 1. Accounts Receivable $ (1 Mark) Total 2. Property, Plant and Equipment (extract): For the year ended 30 June 2013: Carrying Amount 1 July 2012 Delivery Shop Vehicles Equipment Carrying Amount 30 June 2013 As at 30 June 2013: Cost Carrying Amount 30 June 2013 (2 Marks)
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