Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 (22 marks) Benjamin Graham owns 'BG Enterprises'. The Balance Sheet as at 30 June 2019 is given below: BG Enterprises Balance Sheet as

image text in transcribed
image text in transcribed
Question 1 (22 marks) Benjamin Graham owns 'BG Enterprises'. The Balance Sheet as at 30 June 2019 is given below: BG Enterprises Balance Sheet as at 30 June 2019 Current assets Current liabilities Cash at bank 29 100 Accrued wages 9 000 Accounts receivable 76 800 Accounts payable 111 000 120 000 Inventory 72.000 177 900 Non-current Liabilities Non-current assets Loan 30 000 Equipment 144 000 Accumulated depreciation (14 400) 129 600 Total Liabilities 150 000 Owners' equity Capital 120 000 Retained earnings 37 500 Total owners' equity 157.500 Total assets $307 500 Total liabilities & owners' equity $307 500 Additional information: The accounts payable were for amounts owing for purchases of inventory. During the 2020 financial year, the following transactions took place: 1. Stock purchased on credit for $420,000. 2. Invoiced customers $450,000 3. Cash Sales $45,000. 4. Paid rent $18,000 including $3,000 for 2 months' prepaid rent for the following year. 5. Received $400,200 from debtors (Accounts Receivable) 6. Paid wages $132,500. Wages still owing at end of year $7,000 7. Pald creditors (Accounts Payable) $295,000 8. Annual Depreciation on equipment is 5% of cost 9. The owner withdrew $5,000 cash from the business 10. Paid 4% interest on the loan Note: Stock on hand at 30 June 2020 was $180,000 Required: a) Complete the worksheet for the year ending 30 June 2020. b) Prepare a Statement of Profit or Loss for the year ending 30 June 2020. c) Prepare a Statement of Financial Position as at the 30 June 2020 (12.5+ 5 = 22 marks) Q1 c) Prepare a Statement of Financial Position as at the 30 June 2020 (5 marks

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

Step: 3

blur-text-image

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

Sound Investing, Chapter 25 - Change In Auditors

Authors: Kate Mooney

3rd Edition

0071719474, 9780071719476

More Books

Students also viewed these Accounting questions

Question

6. How might an expectancy chart be useful to a decision maker?

Answered: 1 week ago

Question

3 > O Actual direct-labour hours Standard direct-labour hours...

Answered: 1 week ago