Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ronnie opened Parkview Yoga Company ('PYC'), a fitness equipment centre, on 1 September 20x2. PYC completed the following transactions durino Sentemher 202 its first month
Ronnie opened Parkview Yoga Company ('PYC'), a fitness equipment centre, on 1 September 20x2. PYC completed the following transactions durino Sentemher 202 its first month of oneration: Additional information: (a) Assume there is no shipping fee for all purchases and sales. (b) The monthly rent of the office is $10,000 in September. (c) Assume depreciation is recorded only at year end, thus it can be omitted at the month end. (d) Since the last day of the month is Sunday, the salary expense of $20,000 needs to be accrued at the month end. Required: 1 Prepare journal entries to record the above transactions, including any necessary month-end adjustments. Explanations are not required. (29 marks) 2 Open the following T-accounts: Cash; Prepaid rent; Office equipment; Inventory; Accounts receivable; Accounts payable; Unearned revenue; Salary payable; Capital; Withdrawals; Revenue; Cost of goods sold; Rent expense; and Salary expense. Post the journal entries from Requirement 1 to their relevant T-accounts. You are required to show the ending balance of each T-account. (14 marks) 3 Prepare PYC's income statement for the month ended 30 September 202. ( 8 marks) 4 Prepare PYC's balance sheet at 30 September 202. (14 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started