Question
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:
- Prepare a Balance Sheet in the narrative (vertical) format as at 30th June 2021. (5 marks)
- 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.
- Deposits in transit are $9,800.
- Outstanding cheques totalled are $3200.
- The bank service charge is $24.
- The collection of note by the bank is $800.
- The bank statement balance is $9,000.
- The cash account balance is $14,824.
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