Question 1 Jonathan Lenn sa sole trader who has been in business for a number of the following al balance was extracted from the books for the year ended December 31, 2018 1 D 0.000 000 48.000 13.000 300.000 36.000 y Ameden Motori Accura es de Andere ataintle) A ry Cost of good Frugt rep W.000 30.000 2340 500 1200 0.000 500 23 Changende Slonely Electroly open Twee cene 500 2.000 150 1400 0.000 2700 Barker Cawak Long- Avenge Common Actor ge Aspen 121,000 200 16,455 2.300 232.15 337,50 TUREN OVER Page 2 You are given the following information A stationery count revealed that 5400 of stationery was left The provision for bad debits should be adjusted to 5% of debtors Electroly accrued at the end of the year was $1300 Depreciation should be booked on property, plant and equipments follows: Buildings: 2% straight line Fodtures and frings: 12% straight line Motor vehicles 10% straight line The company has $400 of prepaid insurance at year and Acerved wages for the last four days of the year were $24,000 Required: a) Journaline the relevant adjusting entries for the year ended December 31, 2016 10 marks) b) Prepare a multiple-step come statement (10 marks) c) Prepare a classified balance sheets December 31, 2018 (10 marka Prepare the closing entries at December 31, 208 (7 mars) .) Distinguish between or based counting and cash based counting (4 marks) Discuss the purpose of adjusting entries and closing entries in financial accounting (4 marks) Question 1 Jonathan Lenn sa sole trader who has been in business for a number of the following al balance was extracted from the books for the year ended December 31, 2018 1 D 0.000 000 48.000 13.000 300.000 36.000 y Ameden Motori Accura es de Andere ataintle) A ry Cost of good Frugt rep W.000 30.000 2340 500 1200 0.000 500 23 Changende Slonely Electroly open Twee cene 500 2.000 150 1400 0.000 2700 Barker Cawak Long- Avenge Common Actor ge Aspen 121,000 200 16,455 2.300 232.15 337,50 TUREN OVER Page 2 You are given the following information A stationery count revealed that 5400 of stationery was left The provision for bad debits should be adjusted to 5% of debtors Electroly accrued at the end of the year was $1300 Depreciation should be booked on property, plant and equipments follows: Buildings: 2% straight line Fodtures and frings: 12% straight line Motor vehicles 10% straight line The company has $400 of prepaid insurance at year and Acerved wages for the last four days of the year were $24,000 Required: a) Journaline the relevant adjusting entries for the year ended December 31, 2016 10 marks) b) Prepare a multiple-step come statement (10 marks) c) Prepare a classified balance sheets December 31, 2018 (10 marka Prepare the closing entries at December 31, 208 (7 mars) .) Distinguish between or based counting and cash based counting (4 marks) Discuss the purpose of adjusting entries and closing entries in financial accounting (4 marks)
