Question Ruth owns Boaz Company which deals in household wares. Its unadjusted trial balance as at 31 May 2021 is given as follows: Unadjusted Trial Balance as at 31 May 2021 Dr ($) Cr ($) 262,400 31,240 79,565 167,844 287,500 796,100 5,200 1,010 121,842 30,270 28,855 29,460 37,749 Accounts Titles Capital - Ruth Drawings - Ruth Inventory, 1 June 2020 Cash at Bank Trade receivables Purchases Discounts Trade payables Returns Freight inwards Freight outwards Commission revenue Rent expense Utilities expense Advertising expense Insurance expense Salaries and wages expense 6% Bank Loan, due in 2032 Motor vehicle Office equipment Accumulated depreciation as at 1 June Motor vehicle Office equipment Sales 21,120 48,214 36,563 46,490 70,100 326,400 250,000 285,360 180,150 69,996 106,027 1,594,125 2,456,790 2,456,790 The following additional information was extracted from the records towards the end of the financial period. 1. A physical count on 31 May 2021 revealed stocks on hand to be $101,400. 2. Salaries for the financial year was paid up to March 2021. Monthly salaries remained constant during the financial year. 3. Boaz Company owed a credit supplier $49,000 and settled the amount early and was given a 5% cash discount. This transaction was omitted. 4. 5. Payment of $10,500 for shipping goods to customers April 2021 was recorded on the opposite sides of the accounts. Commission revenue of $10,500 was for period from 1 May 2021 to 30 September 2021. Trade discounts of $5,200 received for credit purchases have not been considered in the accounts. 6. 7. Insurance expense shown in the Trial balance above was for the period from September 2020 to June 2021. 8. The 6% bank loan was taken on 1 January 2021. The interest expense has yet to be accounted for 9. Annual depreciation on fixed assets were as follows: Office equipment $19,300 Motor vehicle $21,120 10. Ruth had withdrawn household wares of $1,200 for personal use and no entries had been made in the books. Required: (a) Prepare the necessary general journal entries to record transactions (1) to (8). Narrations are not required. (Hint: For some transactions, you will need to create new accounts which are not shown on the trial balance.) (40 marks) (b) Prepare the following financial statements for Boaz Company: (1) Statement of Comprehensive Income for the year ended 31 May 2021 (ii) Statement of Financial Position as at 31 May 2021 Question Ruth owns Boaz Company which deals in household wares. Its unadjusted trial balance as at 31 May 2021 is given as follows: Unadjusted Trial Balance as at 31 May 2021 Dr ($) Cr ($) 262,400 31,240 79,565 167,844 287,500 796,100 5,200 1,010 121,842 30,270 28,855 29,460 37,749 Accounts Titles Capital - Ruth Drawings - Ruth Inventory, 1 June 2020 Cash at Bank Trade receivables Purchases Discounts Trade payables Returns Freight inwards Freight outwards Commission revenue Rent expense Utilities expense Advertising expense Insurance expense Salaries and wages expense 6% Bank Loan, due in 2032 Motor vehicle Office equipment Accumulated depreciation as at 1 June Motor vehicle Office equipment Sales 21,120 48,214 36,563 46,490 70,100 326,400 250,000 285,360 180,150 69,996 106,027 1,594,125 2,456,790 2,456,790 The following additional information was extracted from the records towards the end of the financial period. 1. A physical count on 31 May 2021 revealed stocks on hand to be $101,400. 2. Salaries for the financial year was paid up to March 2021. Monthly salaries remained constant during the financial year. 3. Boaz Company owed a credit supplier $49,000 and settled the amount early and was given a 5% cash discount. This transaction was omitted. 4. 5. Payment of $10,500 for shipping goods to customers April 2021 was recorded on the opposite sides of the accounts. Commission revenue of $10,500 was for period from 1 May 2021 to 30 September 2021. Trade discounts of $5,200 received for credit purchases have not been considered in the accounts. 6. 7. Insurance expense shown in the Trial balance above was for the period from September 2020 to June 2021. 8. The 6% bank loan was taken on 1 January 2021. The interest expense has yet to be accounted for 9. Annual depreciation on fixed assets were as follows: Office equipment $19,300 Motor vehicle $21,120 10. Ruth had withdrawn household wares of $1,200 for personal use and no entries had been made in the books. Required: (a) Prepare the necessary general journal entries to record transactions (1) to (8). Narrations are not required. (Hint: For some transactions, you will need to create new accounts which are not shown on the trial balance.) (40 marks) (b) Prepare the following financial statements for Boaz Company: (1) Statement of Comprehensive Income for the year ended 31 May 2021 (ii) Statement of Financial Position as at 31 May 2021