Question 1 Mr. Joseph has been trading for some years as a wine merchant. The following list of balances has been extracted from his ledger as at 30 April 2019, the end of his most recent financial year. Capital 83.987 Sales 259.270 Trade creditors 19.80 Returns outwards 13.402 Discounts allowed 2306 Discounts received 1952 Purchases 135.680 Returns inwards Carriage outwards Drawings 1840 Carriage inds 11.10 Rent and insurance Heating and Desting 111 010 Postage, stationery and telephone Advertising Salaries and was Cach in hand Cash at bank BO Stockas at I May 2013 15 E Debtors Fixtures and fittings Acc depreciation tres and fittings The following additional information as 30 April 2018 is wie (a) Stock at the close of business was valud 512,50 () Insurance outstanding amounts to 51.120 Heating and lighting is accrued by $1.360 (d) Rent has been prepaid by 55,435 (c) Annual depreciation on Fixtures and fimings is 10%, and it is yet to be recorded for the current financial year Required: Prepare Mr. Joseph's income statement for the year ended 30 April 2019 and a balance sheet as the 112 Marks Question 2 The accounting firm Bravo Inc. prepares its own financial statements at the end of each year. Based on the following information, prepare any adjusting entries that are needed for the accounting records as of December 31, 2020. 1. As of December 31. Bravo Inc. has rendered $20.500 worth of services to clients for which they have not yet billed the client and for which they have not made any accounting entry 2. Bravo Inc. owns equipment (computers and so on) having an original cost of $12.000. The equipment has an expected life of six years. Record depreciation for the current year. 3. On January 1, 2020. Bravo Inc. borrowed $15.000. Both principal and interest are due on December 31, 2021. The interest rate is 11%. 4. On January 1, 2020. Bravo Inc. rented storage space for three years. The entire three-year charge of $15,000 was paid at this time Bravo Inc. (correctly) created a prepaid rent account in the amount of $15.000. 5. As of December 31. workers have eamed $10.200 in wages that are paid and unrecorded. Question 1 Mr. Joseph has been trading for some years as a wine merchant. The following list of balances has been extracted from his ledger as at 30 April 2019, the end of his most recent financial year. Capital 83.987 Sales 259.270 Trade creditors 19.80 Returns outwards 13.402 Discounts allowed 2306 Discounts received 1952 Purchases 135.680 Returns inwards Carriage outwards Drawings 1840 Carriage inds 11.10 Rent and insurance Heating and Desting 111 010 Postage, stationery and telephone Advertising Salaries and was Cach in hand Cash at bank BO Stockas at I May 2013 15 E Debtors Fixtures and fittings Acc depreciation tres and fittings The following additional information as 30 April 2018 is wie (a) Stock at the close of business was valud 512,50 () Insurance outstanding amounts to 51.120 Heating and lighting is accrued by $1.360 (d) Rent has been prepaid by 55,435 (c) Annual depreciation on Fixtures and fimings is 10%, and it is yet to be recorded for the current financial year Required: Prepare Mr. Joseph's income statement for the year ended 30 April 2019 and a balance sheet as the 112 Marks Question 2 The accounting firm Bravo Inc. prepares its own financial statements at the end of each year. Based on the following information, prepare any adjusting entries that are needed for the accounting records as of December 31, 2020. 1. As of December 31. Bravo Inc. has rendered $20.500 worth of services to clients for which they have not yet billed the client and for which they have not made any accounting entry 2. Bravo Inc. owns equipment (computers and so on) having an original cost of $12.000. The equipment has an expected life of six years. Record depreciation for the current year. 3. On January 1, 2020. Bravo Inc. borrowed $15.000. Both principal and interest are due on December 31, 2021. The interest rate is 11%. 4. On January 1, 2020. Bravo Inc. rented storage space for three years. The entire three-year charge of $15,000 was paid at this time Bravo Inc. (correctly) created a prepaid rent account in the amount of $15.000. 5. As of December 31. workers have eamed $10.200 in wages that are paid and unrecorded
