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The following account balances, prepared on an accrual basis, relate to Chen Zone Ltd for the year ended at 30 June 2020. Salaries Security expenses
The following account balances, prepared on an accrual basis, relate to Chen Zone Ltd for the year ended at 30 June 2020. Salaries Security expenses Rent expense Repairs and maintenance expense Accounting and audit fees Interest on loan Loan from bank (payable 30 Oct. 2017) Lighting & power Equipment (cost) Accumulated depreciation - equipment (1 July 2019) Share capital Retained profits 1 July 2019 Cash at bank Income Bad debts expense Accounts payable $98,000 $35,000 $14,000 $37,000 $7,100 $6,000 $60,000 $23,000 $610,400 $60,000 $400,000 $37,000 $26,000 $290,000 $2,300 $11,800 Additional information at 30 June 2020: i. Salaries need to include an additional $3,000 owing to employees for the last week of June 2020. ii. Repairs and maintenance of $37,000 above includes an amount of $4,000 paid in advance for work to be completed in July 2020. iii. $20,000 depreciation is to be charged on equipment for the year. Required: a. Prepare the balance day adjustment journals for i, ii and iii above (5 Marks) b. What is the net profit for Chen Zone Ltd for the year ending 30 June 2020 ? (Show calculation) (5 Marks) c. What are the total assets for Chen Zone Ltd as at 30 June 2020 ? (Show calculation) (5 Marks) d. What are the total equities for Chen Zone Ltd as at 30 June 2020 ? (Show calculation)
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