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Question 6 (6 marks) The following events occurred during the year ended 30 June 2020 for Electrical Limited. On 1 June 2020, Electrical Ltd. signed
Question 6 (6 marks)
The following events occurred during the year ended 30 June 2020 for Electrical Limited.
- On 1 June 2020, Electrical Ltd. signed a three-month 9% per annum bills payable to purchase a new equipment costing $576,000. Interest and principal are paid at maturity.
- On 29 June 2020, Electrical Ltd. received deposit in advance of $10,000 from a construction company for completing the electrical work for a new project during the next 6 months.
- Electricity charges of $50,000 from 24 April to 23 June are payable on 10 July.
- Electricals main product is backed by warranty. Sales of this product for the year totalled $445,000. The opening balance of provision for warranty claims was $15,900. During the year, Electricals warranty expense was $47,550 and claims paid to customers totalled $37,800.
- June sales totalled $252,000. Electrical Ltd. collected GST of 10% on this amount. This is due to be paid to the tax office by the seventh day of the following collection.
- On 30 June 2020, Electrical Ltd. took out a loan for $150,000 from AUZ Bank. Repayments of principal are scheduled evenly over a five-year period. Interest on the loan is paid in the year it is incurred.
Required:
For each item, indicate the account name and the amount to be included as a current liability on Electricals balance sheet prepared at 30 June 2020. (show your working for your calculation for each amount).
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