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Rental income 145860 Interest on loan: WesBank Cell phone and internet Rent expense Interest on mortgage loan Salaries and wages Insurance Advertising Depreciation Credit losses
Rental income 145860 Interest on loan: WesBank Cell phone and internet Rent expense Interest on mortgage loan Salaries and wages Insurance Advertising Depreciation Credit losses 1298591785036400981751342328988817850 6256535 6256535 Additional information a) The business sub-lets a portion of the building and has rental of R13 260 monthly. The tenant still owes the June rental to the business at year end. b) The business has not received the invoice for cell phone and internet expense for the month of June from the vendor. c) Rent expense amounts to R2 800 per month. The rent for July 2023 has already been paid on 30 June 2023. d) A customer provided a deposit of R13 500 for product to be delivered in August 2023. This is currently included in sales. e) Fixed assets are depreciated as follows: Buildings - 10% on straight line method. Furniture and Fittings - 15% per annum on the reducing balance method. f) Debtor A Smith is insolvent, his debt of R1 040 must be written off as irrecoverable. An allowance for credit losses was previously raised for the debt. g) It is the policy of company hold an allowance for credit losses of 2% of outstanding debtors. REQUIRED a) Prepared the year-end adjusting journal entries (10) b) Prepare the statement of profit and loss for the financial year ended 30 June 2023. (15) Signature Traders has a June 2023 year-end. Management has provided you the below pre-adjusted trial balance and has requested you to assist in the preparation of their year-end financial statements
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