Question
QUESTION 1 (10 Marks) Top Cake shop was established on 1 April 2019 with an initial investment of $100,000 by the owner (Jack Claff). During
QUESTION 1 (10 Marks)
Top Cake shop was established on 1 April 2019 with an initial investment of $100,000 by the owner (Jack Claff). During the first few weeks of business, the owner employed a part-time book-keeper who recorded the following list of accounts:
Accounts payable $37,100
Buildings 100,000
Cash at bank 31,000
Furniture 12,000
Jack Claff Capital 150,000
Baking Supplies 5,600
Loan payable 20,700
Accounts receivable 20,000
Land 43,200
Mortgage payable 40,000
Cash drawings by Jack Claff 36,000
QUESTION B but i have included q1 if you needed or can include
Required:
- Assuming that the amounts above are correct, prepare a statement of financial position in vertical format illustrated on page 56, Example 2.3. (show your calculations) (4 marks)
- Prepare a statement of changes in equity for the period and determine the amount of profit (loss) made by the business during the period of its first few weeks of existence, assuming that the owner had invested an additional $20,000 into the business just before the above amounts were calculated by the book-keeper. (must show your calculations) (3 marks)
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