There are 4 parts in this questions, part A then B, C ,D

6 WUCB104_Assign3_Spring_2020_Student template - Word (Product Activation Failed) File Home Insert Design Layout References Mailings Review View ? Tell me what you want to do.. Tran Trung Nguy... Share & Cut AaBbCCD AaBbCCD. AaBbCcD. Find DE Copy Times New Rc + 12 ~ A A Aa - |A = - = - F- 3 21 1 AaBbCc] AaBbCcDd AaBbCcI AaBbCcDd AaBbC( AaBbCc[ AaBbCCD. Aa B gac Replace Paste Format Painter B I U - abe X2 X? A . Z . A . BEE Heading 3 MCQ form.. 1 Normal 1 No Spac... Heading 1 Heading 2 Heading 4 Title Subtitle Subtle Em... Emphasis Select Clipboard Font Paragraph Styles Editing . 1 . . . 9 . . . 1 . . . 8 . . . 1 . . . 7 . . . 1 . . . 6 . . . 1 . . . 5 . . . 1 . . .4 . . . 1 . . . 3 . . . 1 . . . 2 . . . 1 . . . 1 . . . 1 . r 1 . . . I . . . 3 . . . 1 . ; . 7 . . . 1 . . . 2 . . . 1 . . . 3 . . . 1 . . . 4 . . . 1 . . . 5 . . . J . . . 6 . 6 . 1 . . . 7 . . Whiteley Ltd transactions during 2019/2020: QUESTION 1 An Account Receivable is to be written off as uncollectible for the amount of $2 036. PART A 20 marks Additional interest owing on debentures and bank overdraft was $12 150 You have been provided with the Unadjusted Trial Balance for Whiteley Ltd. as at June 30, The directors have decided to transfer $20 000 to the general reserve from retained 2019. The company uses the periodic system for inventory management. All sales revenue is earnings recorded on credit, no cash sales are made by the company. Dividends of 15c per share were recommended. An interim dividend of $25 000 had There are four (4) parts to this question including PART A: General Journal entries, PART B: been paid during the year and debited in the Retained earnings account. Classified Income Statement, PART C: Equity ledger account closing balance calculation and The company issued 20 000 bonus shares valued at $1 each out of the revaluation PART D: Classified Balance sheet. surplus. WHITELEY LTD Whiteley Ltd end of financial year adjustments: Unadjusted Trial Balance . Depreciation to be recorded for the full year on buildings at the rate of 5% p.a., as at 30 June 2019 and on furniture at the rate of 10% p.a. Delivery vehicles were purchased on January 1, 2019. The units of production Account Debit Credit method is used for depreciation purposes based on kilometres travelled during an accounting period. Using the following information record the depreciation Share capital (960 000 shares fully paid) $960 000 60 000 expense for 30 June, 2019. Delivery vehicles travelled 40 000 km's in the period General reserve Retained earnings 2 000 since January 1. Cost $4 000 Revaluation surplus 30 000 Current tax liability 24 800 Residual value 8 000 Accounts payable 60 300 Useful life 200 000 km's Debentures 50 000 Interest due on investments amounted to $12 000. Bank overdraft (current) 36 000 Prepaid insurance at the end of the year amounted to $3 000. Other liabilities (current) 38 800 Record the estimated Bad debts expense of 0.5% for the year ending 30 June, Land $480 000 Buildings 828 000 2019 based on the percentage of net credit sales method. (NB: All sales are on a Accumulated depreciation - buildings 157 200 credit basis). Office equipment 192 000 Note: No adjusting entry is made for beginning and ending inventory. Under the periodic Accumulated depreciation - office equip. 115 400 inventory system, these items would be amended as part of closing entries. Delivery vehicles 84 000 Accounts receivable 87 200 2019 Allowance for Doubtful debts 2 500 June 30 Inventory (1 July 2018) 288 000 Investments 190 000 Prepaid insurance 10 000 Sales 589 900 Interest revenue 7 200 Purchases 298 000 Sales returns and allowances 2 600 Purchases returns and allowances 2 400 Freight inwards 12 900 Freight outwards 10 800 Wages expense 128 200 Interest expense 12 250 Advertising expense 37 000 Income tax expense 24 800 Administrative expenses 120 750 $2 806 500 $2 806 500 Required:6 WUCB104_Assign3_Spring_2020_Student template - Word (Product Activation Failed) File Home Insert Design Layout References Mailings Review View ? Tell me what you want to do.. Tran Trung Nguy... Share g Cut AaBbCc] AaBbCcDd AaBbCcI AaBbCcDd AaBbC( AaBbCCC AaBbCCD. Aa B AaBbCCD AaBbCCD. AaBbCcD. Find DE Copy Times New Rc - 12 - A A Aa - |A = - = - F- > 21 1 gac Replace Paste B I U - abe X2 x A . Z . A . BEE Heading 3 MCQ form... 1 Normal 1 No Spac... Heading 1 Heading 2 Heading 4 Title Subtitle Subtle Em... Emphasis Format Painter Select Clipboard Font Paragraph Styles Editing L 1 . . . 1 . . . 5 . 3 1. ; 7 . . 1 . . 2 . . . 1 . . . 3 . . . 1 . . . 4 . . . 1 . . . 5 . . . 1 . . . 6 . 6 . 1 . . . 7 . . PART B 25 marks Required: Prepare a detailed classified Income Statement for Whiteley Ltd. as at June 30, 2019 taking into account the transactions recorded in Part A. Inventory on hand after a physical stocktake at 30 June 2019 amounted to $398 000. WHITELEY LTD Income Statement for the year ended 30 June 2019 INCOME Sales Less: Sales returns and allowances Net sales Cost of sales: Beginning inventory Purchases Less: Purchases returns & allowances Freight inwards Ending inventory Cost of sales GROSS PROFIT Other income: Interest on investments EXPENSES Selling and distribution expenses Freight outwards Depreciation expense - delivery vehicles Advertising expense Wages expense Total selling and distribution expenses Administrative expenses. Administrative expenses Depreciation - office equipment Depreciation - buildings Insurance expense Total administrative expenses Finance expenses Interest on debentures and overdraft Bad debts Total finance expenses TOTAL EXPENSES Profit before income tax Income tax expense LOSS6 WUCB104_Assign3_Spring_2020_Student template - Word (Product Activation Failed) File Home Insert Design Layout References Mailings Review View ? Tell me what you want to do.. Tran Trung Nguy... Share g Cut DE Copy Times New Rc + 12 - A A Aa - |A = - = - F- > 21 1 AaBbCc] AaBbCcDd AaBbCcI AaBbCcDd AaBbC( AaBbCc[ AaBbCcD. Aa B AaBbCCD AaBbCCD. AaBbCcD. Find gac Replace Paste BI U * abe X2 x A . Z . A . BEE Heading 3 MCQ form... 1 Normal 1 No Spac... Heading 1 Heading 2 Heading 4 Title Subtitle Subtle Em... Emphasis Format Painter Select Clipboard Font Paragraph Styles Editing L 1 . . . 1 . . . J . . . 1 . ; . 7 . . . 1 . . . 2 . . . 1 . . . 3 . . . 1 . . . 4 . . . 1 . . . 5 . . . J . . . 6 . 6 . 1 . . . 7 . . PART C 5 marks PART D 20 marks Required: Required: Prepare a detailed classified Balance Sheet for Whiteley Ltd. as at June 30, 2019 taking into Prepare the Retained Earnings account to determine the final balance for the year ending 30 account the transactions recorded in Part A. June, 2019 taking into account relevant journal entries from Part A. WHITELEY LTD Retained Earnings Balance Sheet as at 30 June 2019 CURRENT ASSETS Accounts Receivable Less: Allowance for doubtful debts Inventory Interest Receivable Prepaid Insurance TOTAL CURRENT ASSETS NON-CURRENT ASSETS Investments Land Buildings Accumulated Depreciation Delivery Vehicles Accumulated Depreciation Furniture and Equipment Accumulated Depreciation TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Accounts Payable Bank Overdraft Current Tax Liability Interest Payable Other TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Debentures TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Share Capital 980 000 shares issued at $1 General Reserve Revaluation Surplus Retained Earnings TOTAL EQUITY