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You are presented with the following information for How Does Your Garden Grow, a nursery owned by Silvia Bells, for the year ended 30 June
You are presented with the following information for How Does Your Garden Grow, a nursery owned by Silvia Bells, for the year ended 30 June 2016.
Can someone help me with the income statement for this question
Credit 15 18 000 How Does Your Garden Grow TRIAL BALANCE AS AT 30 JUNE 2016 Debit IS) Cash 58 000 Accounts Receivable 76 000 Inventory 1 July 2015) 116 000 Prepaid Rent 12 000 Term Deposit 130 000 Gardening Equipment 62 000 Accum. Dep. Gardening Equipment Delivery Van 35 000 Accumulated Depreciation Van Accounts Payable Unearned Revenue Mortgage S. Bells, Capital (1 July 2015) S. Bells, Drawings 8 300 Sales Sales Returns & Allowances 12 370 Purchases Returns & Allowances Interest Income Purchases 156 900 Freight Inward 19 000 Freight Outward 9 400 Wages Sales Staff 62 000 Van Maintenance Expense 8 100 Discount Allowed 900 Nursery Rent Expense 14 000 Advertising Expense 7000 Accountants Wages 4 800 $791 770 12 500 63 000 6 200 20 000 346 150 315 870 3 450 6600 $791770 The following additional information is also provided: i. A physical stock take of inventory at 30 June 2016 revealed $128 600 on hand. ii. The unearned revenue was for a new species of plant that had to be pre-ordered. On balance day half of the plants ardered had been delivered to customers. ii. Van Maintenance includes an annual service in June with a cost of $1 900. This account has not been paid or recorded. iv. It is estimated by Silvia that 4% of the accounts receivable will never be received from the customers by whom it is owed. Both the equipment and the delivery van are expected to be used evenly over their useful lives. The equipment is expected to have a residual value of $2000 at the end of its useful life. The van will have a residual value of $5,000 at the end of its useful life. The expected useful lives of both assets as at the date of their purchase is as follows: Gardening Equipment -10 years Delivery Van - 6 years vi. The nursery rent was prepaid for 6 months on 1st February 2016. vii. $5 000 of the term deposit matures on 1 December 2016, and the remainder matures in 2019. One quarter of the mortgage will be paid in the next accounting period. viii. Examination of the firm's accounting records showed that the part-time accountant had not been paid for May and June. The cost of accounting was $3 200 but had not been recorded or paid for yet. REQUIRED: a. Prepare journals to record any necessary adjustments in the blank General Journal praforma provided below. b. Post each journal into the blank General Ledger proformas provided below. cComplete the Adjusted Trial Balance provided below for the balances derived in the ledger accounts. d. Prepare a fully classified Income Statement for the period in question e. Prepare a statement of Changes in Equity and a fully classified Balance Sheet in narrative form as at the end of the periodStep by Step Solution
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