Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following is an extract of the trial balance of Jordon Limited, a firm that specialised in manufacturing camping tents: Jordon Limited Trial Balance as

image text in transcribed

The following is an extract of the trial balance of Jordon Limited, a firm that specialised in manufacturing camping tents: Jordon Limited Trial Balance as at 31 December 2021 (extract): Additional information: (1) Insurance expense includes a yearly premium paid of $3,000 up to 31 March 2022 . (2) Electricity expense of $4,500 for the quarter ended to 31 January 2022 , is to be paid in February 2022. (3) A debt of $3,000 is to be written off while the bad debt provision is to be 3% of remaining receivables. (4) Provision should be made for any outstanding interest on bank loan. (5) Rental received included the rent for January and February 2022. Required: Show how the above accounts / new accounts would be presented (after the above adjustments), on the extract of the Income statement for the year ended 31 December 2021 and the Statement of financial position as at that date. Proper accounts classification is required

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_2

Step: 3

blur-text-image_3

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

The Internal Auditor At Work A Practical Guide To Everyday Challenges

Authors: K. H. Spencer Pickett

1st Edition

0471458392, 978-0471458395

More Books

Students also viewed these Accounting questions

Question

Discuss the importance of workforce planning.

Answered: 1 week ago

Question

Differentiate between a mission statement and a vision statement.

Answered: 1 week ago