Question
The trial balance before adjustments as at 30 June 2023. Can you please help me put together the statement of financial position and the statement
The trial balance before adjustments as at 30 June 2023. Can you please help me put together the statement of financial position and the statement of profit and loss and other comprehensive income using additional information from parts a to d. Thanks
Sales revenue 29,760,300 Services revenue 18,510,400 Extraordinary Gain 626,000 Proceeds from the sale of land 780,000 Expenses 42,497,600 Equipment (at cost net of depreciation) 3,210,000 Vehicles (at cost net of depreciation) 1,300,100 Buildings (at cost net of depreciation) 6,956,700 Land (at cost) 4,280,500 Accounts receivable 5,420,300 Allowance for doubtful debts 340,000 Inventory (at lower of cost or net realisable value) 2,495,100 Cash at bank 53,400 Prepaid expenses 245,700 Prepaid services revenue 2,975,000 Loan from HW Bank 1,700,000 Provisions 2,210,600 Accounts payable 897,450 Accrued expenses 212,000 Dividend declared and paid 357,000 Share capital 2,649,400 General Reserve 877,600 Retained earnings (1 July 2022) 5,277,650 66,816,400 66,816,400
a)
Included in the amount of 'Expenses' in the trial balance provided above are:
Cost of sales $17,930,000.
Salaries and wages $9,214,000.
Annual leave expense of $966, 000
Long service leave expense of $86,000.
Power and other utility expenses $1,240,000.
Insurance expense $795,600.
Advertising expenses $1,690,000.
Other general operating expenses of $3,112,500.
Depreciation expense for equipment $680,000.
Depreciation expense for vehicles of $380,000.
Depreciation expense for buildings of $695,000.
Warranty expense of $1,240,000.
$487,000 is the cost of land sold in March 2023.
$525,000 payment to auditors ($65,000 of this was for taxation advice and the rest for the
audit of the company).
$400 for a subscription to an online TV/sports streaming service for staff break/lounge rooms
b)
The company borrowed $1,700,000 from HW on 1 July 2022. The loan carries 4.5% p.a. On 1 July
each year, the company is required to make a payment of interest accrued for the year. On 1 July
2023, the company made a payment, being interest accrued for the year. The company is required
to pay the principal amount in full on 1 July 2026.
c)
Only one item of land was sold during the period (in March 2023) for $780,000 cash.
d)
The extraordinary gain relates to the unexpected receipt of money. In March 2021, a major
customer of the company was declared bankrupt owing the company $1,210,000. It had been
expected that no money would be received, and the company had written this bad debt off in
June 2021. However, an investigation was undertaken by ASIC and assets have now been
recovered from the customer. As a result, in April 2023 the company received $626,000 (no
further money is expected to be recovered from this previous customer)
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