Question two
The following is the trial balance of KSmooth as at 31 March 2002. Draw up a set of
final accounts for the year ended 31 March 2002.
Dr Cr
Stock 1 April 2001
Sales
Purchases
Carriage inwards
Carriage outwards
Returns outwards
Wages and salaries
Rent and rates
Communication expenses
Commissions payable
Insurance
Sundry expenses
Buildings
Debtors
Sh.
1,816,000
6,918,500
42,000
157,000
1,024,000
301,500
62,400
21,600
40,500
31,800
2,000,000
1,432,000
Sh.
9,234,000
64,000
98Creditors
Fixtures
Cash at bank
Cash in hand
Drawings
Capital
285,000
297,000
11,500
762,000
152,028
816,000
5,088,800
152,028
Trade receivables 600 Subscribed capital 6600 Cash 1600 Retained earnings 200 Cash at bark 5000 Profit or loss for the year 50 TOTAL ASSETS 6600 TOTAL EQUITY AND LIABILITIES 6600 Current economic events: 1. The after-tax profit (Profit or loss for the year) has been transferred to the retained earnings. 2. The customer paid its total due debt by money transfer, and paid 50 default interest as well too. 3. The company paid 70 default interest to its supplier. Questions: 1. Balance sheet value of goods 2. Balance sheet value of cash at bank 3. Balance sheet value of retained earnings 4. Other Incomes 5. Other expensesPart 1 Requirements: 1. You are required to show at not more than 1 page a. Calculation and explanation of how you derive the depreciation expense and COGS. b. Explanation of whether My Brain is using Perpetual or Periodic inventory system. c. We will name this document "Explanation". 2. You are required to enter ALL the transactions into the accounting software including any balance day adjustments and entries for COGS and ending inventory. 3. Set up the accounts with the proper account ID in Wave Accounting Software. 3. Print out the Explanation, Trial Balance as at 31 July 2020, Balance Sheet as at 31 July 2020, Profit and Loss Statement and Account Transactions Report for the period of 31 July 2020 to be uploaded to Moodle for your submission.10. 11. . March, 1 - Anthony and Boots formed the Sec. Commercial, Ltd with a E 5.000 capital and subscribed equal shares. Boots delivered E 1 .500 (bank transfer} Anthony paid up his capital as follows. Bank transfer E 1.500 1 Vehicle' valued at E 1.000 March. 5 Purchase at goods ( 1.000 + VAT 23%}. Invoice nr. 165.99 from Moment. March, 15 - Sale of goods to our costumer North Company (Our invoice nr. 99001 ) #3 2.000 + VAT 23%. March, 16 Payroll of Personnel - Gross Pay - 500 - Income tax withholding 5%: - Social Security tax withholding - 1 1% (employee); 23.75% (employer) March, 20 - Payment to Marceau! as follows: check nr. 4235158 (Receipt M185\") March, 25 - Electricity invoice ( 31,50. VAT included at 6%). Our check nr. 4236168. March, 23 The costumer pays half of debt with check. March, 29 Net salary payment (bank transfer] March, 30 Check deposit. April, 2 Warehouse acquisition {E 5.600 + VAT 23%). Estate Center invoice nr. 99042. Payment: 1.500 - check nr. 42361113 The remaining amount - two equal instalments (3 and 6 months). April, 3 - Inventory on this date - E 148.75. (COGS = Initial Inventories + Purchases +I- Reolassioations & Adjustments Final Inventories) REQU EST: 1. Accounting records using "T\" accounts. 2. VAT Clearance 3. Trial Balance, Balance Sheet, Prot and Loss Statement 4. Gross Margin (Gross Margin = Net Sales Cost of goods sold)
