QUESTION FOUR FINANCIAL STATEMENTS 42 MARKS Robyn Cool is the owner of Ice Cream Treats Ltd. The following is an extract from the Trial Balance prepared by the accountant on 30 June 2021. You must account for GST where appropriate. 4,2004 4,102 151,000 240 30 8,500 ICE CREAM TREATS LTD TRIAL BALANCE (EXTRACT) AS AT 30 JUNE 20212 Bank- 59,592 Accounts Payable Accounts Receivable 2,684 Tax Payable- Term Deposit (4% due 28/6/25) 6,000 Sales Wages - Office 56,550 Interest on Term Deposit Allowance for Doubtful Bad Debts 350 Debtse Shop Fittings (cost) Accumulated Depreciation 85,000 - Shop Fittings Advertising Share Capital (20,000 fully 5,000 paid shares) Cost of Goods Sold 47,500 Loan (5% p.a. due 2030) Goodwill Retained Earnings, 1 April 20,000 20212 Insurance 14,600 Commission Receivede Interest on Loane 3,000 Dividends 3,000 Inventory, 30 June 2021 1,000 Electricity 10,500 Sales Returns 2,300 Tax Expensee 2,796 319,872 60,000 60,000 28,800 3,000 JA 319,872 Additional Information: (b) Prepare the financial statements. ICE CREAM TREATS LTD- STATEMENT OF COMPREHENSIVE INCOME Depreciate the shop fittings at 5% straight line. Bad Debts to be written off amount to $184. The allowance for doubtful debts is to be adjusted to 2% of accounts receivable. Notes $ $ sle REQUIRED: de de (a) Prepare the balance day adjustment journal entries. NARRATIONS ARE REQUIRED. d ICE CREAM TREATS LTD GENERAL JOURNAL Date Details DR $ CR$ de 2021 t. 1 e de e 3 Je tat de (3 marks) Notes to the Statement of Comprehensive Income: 1. Revenue 2. Other Income (22 marks) Notes to the Statement of Financial Position:- ICE CREAM TREATS LTD- STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) - 1. Accounts Receivable- Assets: Notes $ $ 2. Property, Plant and Equipment For year ended 30 June 20212 Shop Fittings Carrying amount 1 July 2020- Total 3 Carrying amount 30 June 2021 As at 30 June 20212 Costa 3 Carrying amount 30 June 2021 3. Retained Earnings- (17 marks) 3