Question The following unadjusted trial balance was extracted from the books of Joni, a sole trade of paper products: Unadjusted Trial Balance as at 30 June 2022 The following additional information was made available before the year-end closing: 1. Insurance expense in the trial balance consisted of insurance paid for April 2022 to August 2022. 2. Commission income amounting to $7,200 had been mistakenly recorded as rent income. 3. In April 2022, Joni received some damaged inventory of $12,100 from its customers. These had been sold on credit. The business had not recorded the return of these goods by the customers as at 30 June 2022. 4. Joni received $9,400 for goods to be delivered in July 2022 . This had been included in the amount of sales for the year. 5. A payment of $105,000 for a credit supplier had not been recorded in the books of Joni. A 20% discount had been received from the credit supplier. This transaction has not been recorded. 6. The amount of annual depreciation on fixed assets were as follows: 7. Interest expense in the trial balance relates to the bank loan which was taken up on 1 April 2022. The outstanding interest for the year has not been accounted for as at year-end. 8. During the year, Joni withdrew $5,000 by cheque for personal use. This had been omitted from the financial records of Joni as at 30 June 2022. 9. Joni has rented out her shop to Lee Co. at a monthly rental of $3,600 on 1 January 2022. The rental has yet to be received by Joni. 10. Inventory as at 30 June 2022 amounted to $187,400 after a physical stock count. Required: (a) Prepare the necessary general journal entries to record transactions (1) to (9). 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 Joni: (i) Statement of Comprehensive Income for the year ended 30 June 2022 (ii) Statement of Financial Position as at 30 June 2022 (60 marks) Question The following unadjusted trial balance was extracted from the books of Joni, a sole trade of paper products: Unadjusted Trial Balance as at 30 June 2022 The following additional information was made available before the year-end closing: 1. Insurance expense in the trial balance consisted of insurance paid for April 2022 to August 2022. 2. Commission income amounting to $7,200 had been mistakenly recorded as rent income. 3. In April 2022, Joni received some damaged inventory of $12,100 from its customers. These had been sold on credit. The business had not recorded the return of these goods by the customers as at 30 June 2022. 4. Joni received $9,400 for goods to be delivered in July 2022 . This had been included in the amount of sales for the year. 5. A payment of $105,000 for a credit supplier had not been recorded in the books of Joni. A 20% discount had been received from the credit supplier. This transaction has not been recorded. 6. The amount of annual depreciation on fixed assets were as follows: 7. Interest expense in the trial balance relates to the bank loan which was taken up on 1 April 2022. The outstanding interest for the year has not been accounted for as at year-end. 8. During the year, Joni withdrew $5,000 by cheque for personal use. This had been omitted from the financial records of Joni as at 30 June 2022. 9. Joni has rented out her shop to Lee Co. at a monthly rental of $3,600 on 1 January 2022. The rental has yet to be received by Joni. 10. Inventory as at 30 June 2022 amounted to $187,400 after a physical stock count. Required: (a) Prepare the necessary general journal entries to record transactions (1) to (9). 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 Joni: (i) Statement of Comprehensive Income for the year ended 30 June 2022 (ii) Statement of Financial Position as at 30 June 2022 (60 marks)
