The following events occurred during the year ended 30 June 2020 for Electrical Limited On 1 June 2020, Electrical Ltd signed a three month 12 per annum note payable to purchase a new equipment costing $48,000 Interest and principal are paid at maturity On 29 June 2020, Electrical Ltd received deposit in advance of $12,000 from a construction company for completing the electrical work for a new project during the next 6 months Electricity charges of $40,000 from 24 April to 23 June are payable on 10 July Electricals main product is backed by warranty Sales of this product for the year totalled $445,000 The opening balance of provision for warranty claims was $10,600 During the year, Electricals warranty expense was $31,700 and claims paid to customers totalled $25,200 June sales totalled $212,000 Electrical Ltd collected GST of 10 on this amount This is due to be paid to the tax office by the seventh day of the following collection On 30 June 2020, Electrical Ltd took out a loan for $110,000 from AUZ Bank Repayments of principal are scheduled evenly over a five year period Interest on the loan is paid in the year it is incurred Required For each item, indicate the account name and the amount to be included as a current liability on Electricals balance sheet prepared at 30 June 2020 (show your working for your calculation for each amount)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 09, 2024

The following events occurred during the year ended 30 June 2020 for Electrical Limited. On 1 June 2020, Electrical Ltd. signed a three-month 12% per

The following events occurred during the year ended 30 June 2020 for Electrical Limited.

On 1 June 2020, Electrical Ltd. signed a three-month 12% per annum note payable to purchase a new equipment costing $48,000. Interest and principal are paid at maturity.
On 29 June 2020, Electrical Ltd. received deposit in advance of $12,000 from a construction company for completing the electrical work for a new project during the next 6 months.
Electricity charges of $40,000 from 24 April to 23 June are payable on 10 July.
Electricals main product is backed by warranty. Sales of this product for the year totalled $445,000. The opening balance of provision for warranty claims was $10,600. During the year, Electricals warranty expense was $31,700 and claims paid to customers totalled $25,200.
June sales totalled $212,000. Electrical Ltd. collected GST of 10% on this amount. This is due to be paid to the tax office by the seventh day of the following collection.
On 30 June 2020, Electrical Ltd. took out a loan for $110,000 from AUZ Bank. Repayments of principal are scheduled evenly over a five-year period. Interest on the loan is paid in the year it is incurred.

Required:

For each item, indicate the account name and the amount to be included as a current liability on Electricals balance sheet prepared at 30 June 2020. (show your working for your calculation for each amount).