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Please help. Thank you. The following information has been extracted from the financial records of Lucy Ltd: 31 March 2021 $1 500 6 345 320
Please help. Thank you.
The following information has been extracted from the financial records of Lucy Ltd: 31 March 2021 $1 500 6 345 320 7 000 20 Dr 55 025 16 000 900 7 492 10 As at: Cash Accounts receivable Allowance for DD Inventory GST receivable/payable Plant and equipment - at cost Accumulated Depreciation Bank overdraft Accounts payable Interest expense payable Dividends payable Income tax payable Long-term borrowings Share capital Retained earnings For the year ended 31 March 2021: Sales Cost of goods sold Operating expenses Doubtful debts expense Interest expense Depreciation expense Loss on sale of plant and equipment Tax expense 31 March 2020 $275 5 600 290 7 240 81 Cr 50 000 13 500 200 5 396 15 70 30 150 200 3 000 15 000 26 818 9 000 34 533 $70 000 48 000 24 690 310 165 3 200 500 400 Additional information: 1. Lucy Ltd uses the indirect method for reporting cash flows from operating activities. 2. The entity classifies dividends paid and interest paid as cash flows from financing activities. 3. An item of equipment was sold for $2,000 cash. Required: Reconstruct the Lucy Ltd general ledger accounts and journal entries provided in the an- swer booklet. Accounts receivable GST GST inclusive GST exclusive GST inclusive ::: *The journal entry would have been: The journal entry would have been: Allowance for DD GST payable/receivable Inventory Plant and Equipment AD + # The journal entry would have been: Accounts payable GST GST exclusive GST inclusive GST inclusive *The journal entry would have been: Interest expense payable Dividends payable Income tax payable LTB Share capital Retained earningsStep by Step Solution
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