Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The accountant of Paul Shop Fitter Private Limited has provided the following data on the Assets, Liabilities, Equity, Income and Expense amounts as at 30th

The accountant of Paul Shop Fitter Private Limited has provided the following data on the Assets, Liabilities, Equity, Income and Expense amounts as at 30th June 2021.

$

$

Equipment

221,800

Supplies

84,200

Prepaid Insurance

24,000

Cash in Bank

88,400

Accounts receivable

182,800

Accounts payable

101,100

Capital

?

Bank loan

30,000

Service income

1,158,000

Salary expense

483,000

Advertising expense

15,000

Supplies expense

142,500

Required:

  1. Prepare a Balance Sheet in the narrative (vertical) format as at 30th June 2021. (5 marks)
  2. Explain what key information the Balance Sheet provides to users of the financial statements. (2 marks)

ANSWER:

Question 6 (7 marks)

The bank statement balance and cash account balance do not agree. The owner of E-Bite Limited has requested to prepare a bank reconciliation to reconcile these balances. For this purpose, the following information is given.

  1. Deposits in transit are $9,800.
  2. Outstanding cheques totalled are $3200.
  3. The bank service charge is $24.
  4. The collection of note by the bank is $800.
  5. The bank statement balance is $9,000.
  6. The cash account balance is $14,824.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting And Financial Management For Construction Project Managers

Authors: Len Holm

1st Edition

1138550655, 978-1138550650

More Books

Students also viewed these Accounting questions