Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show in excel like above, thanks! Balance Sheet & Income Statement Coast Ltd., which has just started trading on 1 January 2019. has the

image text in transcribedimage text in transcribedPlease show in excel like above, thanks!

Balance Sheet & Income Statement Coast Ltd., which has just started trading on 1 January 2019. has the following account balances prior to the recording of the final month of the year: Account Balances as at 30 November 2019 Account $ Cash $5 300 Accounts receivable $6 400 Stock of Supplies $11 600 Property, Plant & Equipment -cost $36 000 Accounts payable $3 000 Interest payable S 100 Bank Loan $12 000 Contributed capital (40 000 shares) $20 000 Sales revenue $70 000 Operating expenses (excluding depreciation) S10 000 Other operating income $3 300 Cost of goods sold $38 000 Interest expense $1 100 Note: Operating expenses include rent and wages but exclude depreciation. The interest rate of the bank loan is 10% per annum. In December 2019, the following transactions took place: 1. Credit purchases of goods $10,000 2. Cash sales $13,000 (cost of goods sold $8,000) 3. Credit sales $8,000 (cost of goods sold $6,000) 4. Paid wages for December $2,500 5. Received $9,000 from debtors. 6. Paid interest of $500. 7. At the end of December, sold off an equipment that has costed $3,000 at the price of $1,500. The yearly depreciation expense of this equipment was $1,000. Additional information as below: 1. Annual rental expense is $6000. As at 31 December 2019, the rental expense for the last month is still pending payment. 2. Annual depreciation expense for the property, plant & equipment before the disposal of the equipment at transaction 7 was $9,000. Required: 1. Record the Account balances prior to adjustments in the workbook. Then, calculate and record the Adjustments in the workbook, total and balance the workbook. Indicate the transaction and additional information number accordingly in the workbook. [3 marks] 2. Prepare a properly formatted Balance Sheet as at 31 December 2019 and Income Statement for the year ended 31 December 2019. [2 marks] A B C D E F G H K L M N Q R o Revenues - Expenses 2 Assets = Liabilities + Equity Transactions 3 4 5 1 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 0 0 0 0 0 0 0 = 0 0 0 0 0 0 0 ol 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Integrated Concepts And Procedures

Authors: Donald H. Taylor, G. William Glezen

5th Edition

0471524239, 978-0471524236

More Books

Students also viewed these Accounting questions