QUESTION 1 - Accrual Accounting Cash at Bank Accounts Receivable Inventory (1 July 2018) Dynamite Clothing is a shop which sells clothes and is owned and run by Jackson Jr. Dynamite Clothing - TRIAL BALANCE AS AT 30 JUNE 2019 Debit ($) Credit (S) 12 500 17 500 32 500 Prepaid Rent 24 000 Furniture 120 000 Accum. Deprec. - Furniture 40 000 Equipment 80 000 Accum. Deprec. - Equipment 12 500 Loan Payable 6 000 Accounts Payable 9 300 Capital (1 July 2018) 218 700 Drawings 12 500 Sales Income 257 800 Sales Returns & Allowances 1 200 Discount Received 4 720 Purchases 128 000 50 000 Wages Expense 1 800 Advertising Expense 240 1 360 820 2 600 28 000 32 000 2 600 1 800 $549 220 $549 220 Discount Allowed Electricity Expense Office Supplies Expense Interest Expense Administrative Salaries Expense Rent Expense Insurance Expense Sundry Administration Expense (continued.....) The following additional information is also provided for the year ended 30 June 2019: (1) A physical stocktake of inventory as at 30 June 2019 revealed $31,900 on hand. (2) It is estimated that 3.5% of the 30 June 2019 balance of Accounts Receivable will be never be collected from the customers. (3) Wages are still owed and have not been paid (and have not been recorded yet) as at balance date (30th June) for a total of $1,650. (4) Some clothes with a sale price of $620 were delivered to a customer on the 28th of June 2019. The sale of these clothes was not recorded yet and the customer had not paid for the clothes yet by the 30th of June. The customer is expected to pay on the 3rd of July 2019. (5) The Furniture is expected to have a useful life of ten (10) years and then be sold for an estimated amount of $11,500. The Equipment has a useful life of 12 years and an expected residual value of $5,600. Calculate and record the depreciation expense for the year. (6) The Prepaid Rent is for rent which has already been paid six months in advance and covers the rent until 31st August 2019. (7) $530 of the recorded sales represents cash received in advance from a customer on the 26th of June 2019 for clothes which will not be delivered to the customer until the 7th of July 2019. (8) The telephone bill was received in the mail on the 20th of June 2019. The bill has not been recorded or paid yet at the 30th of June. The bill was for $410. (9) Insurance of $1,000 was paid using cash, for 5 months on the 1st of March 2019. (10) A check of Office Supplies showed that at the 30th of June 2019, $610 of supplies had been used during the period. ttttt -Solutions to Test tt DATE ACCOUNTS tit 1 > Lilit tit Dre 1 LL LL LLL Cre C t
