Required
c. Complete the Adjusted Trial Balance provided below for the balances derived in the ledger accounts.
d. Prepare an Income Statement for the period in question (including the COS).
e. Prepare a Statement of Changes in Equity and a Balance Sheet in narrative format as at the end of the period.
Tutorial Topic Review Question You are presented with the following information for "How Does Your Garden Grow", a nursery owned by Silvia Bells, for the year ended 301une 2021. HOW DOES Your Garden GI'OW TRIAL BALANCE AS AT 30 JUNE 2021 Debit [5| Credit (51 Cash 58 000 Accounts Receivable 76 000 Inventory (1 July 2020} 116 000 Prepaid Rent 12 000 Term Deposit 130 000 Gardening Equipment 62 000 Accum. Dep. Gardening Equipment 18 000 Delivery Van 35 000 Accumulated Depreciation Van 12 500 Accounts Payable 63 000 Unearned Revenue 6 200 Mortgage 20 000 S. Bells, Capital (1 July 2020) 346 150 S. Bells , Drawings 8 300 Sales 315 870 Sales Returns 8: Allowances 12 370 Purchases Returns & Allowances 3 450 Interest Income 6 600 Purchases 156 900 Freight Inward 19 000 Freight Outward 9 400 Wages Sales Staff 62 000 Van Maintenance Expense 8 100 Discount Allowed 900 Nursery Rent Expense 14 000 Advertising Expense 7 000 Accountants Wages 4 800 5121110 M (continued ..... ) How Does Your Garden Grow Adjusted Trial Balance As at 30 June 2021 Account Debit ($) Credit ($) Cash on hand 58 000 Accounts Receivable 76 000 Inventory (1/7/2020) 116 000 Prepaid Rent Term Deposit 130 000 Gardening Equipment 62 000 Accum. Depr. - Gardening Equip. Delivery Van 35 000 Accum. Depr. - Delivery Van Accounts Payable 63 000 Unearned Revenue Mortgage 20 000 Ms S Bells, Capital (1 July 2020) 346 150 Ms S Bells, Dr 8 300 Sales Sales Returns and Allowances 12 370 Purchase Returns and Allowances 3 450 Interest Income 6 600 Purchases 156 900 Freight Inward 19 000 Freight Outward 9 400 Wages Sales Staff 62 000 Van Maintenance Expense Discount Allowed 900 Nursery Rent Expense Advertising Expense 7 000 Accountants Wages Van Maintenance Payable Doubtful Debts Expense Allow. for Doubtful Debts Depr. Exp. - Garden Equip. Depr. Exp. - Van Accounting Wages Payable Total Don't forget to attempt parts (d) and (e) of this questionThe following additional information is also provided: iv. vi. vii. viii. A physical stock take of inventory at 30 June 2021 revealed $128 600 on hand. The unearned revenue was for a new species of plant that had to be pre-ordered. On balance day half of the plants ordered had been delivered to customers. Van Maintenance includes an annual service in June with a cost of $1 900. This account has not been paid or recorded. It is estimated by Silvia that 4% of the accounts receivable will never be received from the customers by whom it is owed. Both the equipment and the delivery van are expected to be used evenly over their useful lives. The equipment is expected to have a residual value of $2 000 at the end of its useful life. The van will have a residual value of $5,000 at the end of its useful life. The expected useful lives of both assets as at the date of their purchase is as follows: Gardening Equipment -10 years Delivery Van - 6 years The nursery rent was prepaid for 6 months on lst February 2021. $5 000 of the term deposit matures on 1 December 2021, and the remainder matures in 2024. One quarter of the mortgage will be paid in the next accounting period. {THIS INFORMATION WILL NOT BE REQUIRED TO BE CONSIDERED THIS WEEK BUT YOU WILL NEED THIS INFORMATION FOR THE TOPIC 5 TUTORIAL) Examination of the firm's accounting records showed that the part-time accountant had not been paid for May and June. The cost of accounting was $3 200 but had not been recorded or paid for yet
