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Pooh Bailey has run a furniture business for many years, but has never kept adequate accounting records. However, a need to obtain a loan for
Pooh Bailey has run a furniture business for many years, but has never kept adequate accounting records. However, a need to obtain a loan for the expansion of the business has necessitated the preparation of the final accounts for the year ended December 31,2022 . She is seeking your help in the preparation of the statements. 1. Pooh is able to provide you with the following information about her financial position at January 1, 2022: inventory of furniture $21,420; Trade accounts receivable $20,286; Trade accounts payable $18,196; Buildings $25,200; Fixtures and Fittings $23,400, 2. Building expenses owing $4864, insurance prepaid $4,000, bank $8,840 3. Cheques drawn during the year were estimated as follows: 4. All cash and cheques received were paid into the bank account immediately. Pooh estimates the following receipts for the year - Cheque received from trade receivables $194,500 - Cash Sales $32,700 5. Depreciation is to be written-off the buildings at 20% per annum and Fixtures and Fitting at 10% per annum. 6. At December 31,2022 , building expenses owing was $4,582, and insurance paid in advance was $5,354. 7. Included in the amount paid for Fixtures and fittings were: A table bought for $2,600, which Pooh resold during the year at cost, some wooden shelving (cost $1,500 ), which Pooh used in building an extension to her personal garage. 8. Cheque written for personal use during the year amounted to $43,000 9. Other balances at 31 December 31,2020 were
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