Required: Prepare General Journal entries, including narrations, to record the following transactions in the template provided. Whiteley Ltd transactions during 2019/2020: An Account Receivable is to be written off as uncollectible for the amount of $2 036. Additional interest owing on debentures and bank overdraft was $12 150. The directors have decided to transfer $20 000 to the general reserve from retained earnings. Dividends of 15c per share were recommended. An interim dividend of $25 000 had been paid during the year and debited in the Retained earnings account. The company issued 20 000 bonus shares valued at $1 each out of the revaluation surplus. Whiteley Ltd end of financial year adjustments: Depreciation to be recorded for the full year on buildings at the rate of 5% p.a., and on furniture at the rate of 10% p.a. Delivery vehicles were purchased on January 1, 2019. The units of production method is used for depreciation purposes based on kilometres travelled during an accounting period. Using the following information record the depreciation expense for 30 June, 2019. Delivery vehicles travelled 40 000 km's in the period since January 1. . Cost 84 000 - Residual value 8 000 Useful life 200 000 km's Interest due on investments amounted to $12 000. Prepaid insurance at the end of the year amounted to $3 000. Record the estimated Bad debts expense of 0.5% for the year ending 30 June, 2019 based on the percentage of net credit sales method. (NB: All sales are on a credit basis). Note: No adjusting entry is made for beginning and ending inventory. Under the periodic inventory system, these items would be amended as part of closing entries. PART B 25 marks Required: Prepare a detailed classified Income Statement for Whiteley Ltd. as at June 30, 2019 taking into account the transactions recorded in Part A. Inventory on hand after a physical stocktake at 30 June 2019 amounted to $398 000. WHITELEY LTD Income Statement for the year ended 30 June 2019 INCOME Sales Less: Sales returns and allowances Net sales Cost of sales: Beginning inventory Purchases Less: Purchases returns & allowances Freight inwards Ending inventory Cost of sales GROSS PROFIT Other income: Interest on investments EXPENSES Selling and distribution expenses Freight outwards Depreciation expense - delivery vehicles Advertising expense Wages expense Total selling and distribution expenses Administrative expenses: Administrative expenses Depreciation - office equipment Depreciation - buildings Insurance expense Total administrative expenses Finance expenses Interest on debentures and overdraft Bad debts Total finance expenses TOTAL EXPENSES Profit before income tax Income tax expense LOSS PART C 5 marks Required: Prepare the Retained Earnings account to determine the final balance for the year ending 30 June, 2019 taking into account relevant journal entries from Part A. Retained Earnings go PART D 20 marks Required: Prepare a detailed classified Balance Sheet for Whiteley Ltd. as at June 30, 2019 taking into account the transactions recorded in Part A. WHITELEY LTD Balance Sheet as at 30 June 2019 CURRENT ASSETS Accounts Receivable Less: Allowance for doubtful debts Inventory Interest Receivable Prepaid Insurance TOTAL CURRENT ASSETS NON-CURRENT ASSETS Investments Land Buildings Accumulated Depreciation Delivery Vehicles Accumulated Depreciation Furniture and Equipment Accumulated Depreciation TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Accounts Payable Bank Overdraft Current Tax Liability Interest Payable Other TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Debentures TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY: Share Capital 980 000 shares issued at $1 General Reserve Revaluation Surplus Retained Earnings TOTAL EQUITY