You have been provided with the Unadjusted Trial Balance for Whiteley Ltd. as at June 30, 2019. The company uses the periodic system for inventory management. All sales revenue is recorded on credit, no cash sales are made by the company. There are four (4) parts to this question including PART A: General Journal entries, PART B: Classified Income Statement, PART C: Equity ledger account closing balance calculation and PART D: Classified Balance sheet. e WHITELEY LTD Unadjusted Trial Balance as at 30 June 2019 Account Debit Credit $960 000 260 000 72 000- 30 000 24 800+ 60 300- 450 000 36 000- 38 800 157 2002 115 400 Share capital (960 000 shares fully paid) General reserve Retained earnings Revaluation surplus Current tax liability Accounts payable Debentures Bank overdraft (current) Other liabilities (current) Land $480 000 Buildings 828 000 Accumulated depreciation - buildings Office equipment 192 000- Accumulated depreciation - office equip. Delivery vehicles 84 000 Accounts receivable 87 200 Allowance for Doubtful debts Inventory (1 July 2018) 288 000 Investments 190 000 Prepaid insurance 10 000 Sales Interest revenue Purchases 298 000 Sales returns and allowances 2 600 Purchases returns and allowances Freight inwards 12 900 Freight outwards 10 800- Wages expense 128 2002 Interest expense 12 250- Advertising expense 37 000 Income tax expense 24 800 Administrative expenses 120.750 $2 806 500 2 500 589 900 7 200 2 400- $2806 500 Required: Prepare General Journal entries, including narrations, to record the following transactions in the template provided. Whiteley Ltd transactions during 2019/2020: . An Account Receivable is to be written off as uncollectible for the amount of $2 036.4 Additional interest owing on debentures and bank overdraft was $12 150.- The directors have decided to transfer $20 000 to the general reserve from retained earnings. Dividends of 15e per share were recommended. An interim dividend of $25 000 had been paid during the year and debited in the Retained earnings account. The company issued 20 000 bonus shares valued at $1 each out of the revaluation surplus. Whiteley Ltd end of financial year adjustments: Depreciation to be recorded for the full year on buildings at the rate of 5% p.a., and on furniture at the rate of 10% p.a. Delivery vehicles were purchased on January 1, 2019. The units of production method is used for depreciation purposes based on kilometres travelled during an accounting period. Using the following information record the depreciation expense for 30 June, 2019. Delivery vehicles travelled 40 000 km's in the period since January 1. Cost 84 000 Residual value 8 000 Useful life 200 000 km's Interest due on investments amounted to $12 000.- Prepaid insurance at the end of the year amounted to $3 000.- Record the estimated Bad debts expense of 0.5% for the year ending 30 June, 2019 based on the percentage of net credit sales method. (NB: All sales are on a credit basis). Note: No adjusting entry is made for beginning and ending inventory. Under the periodic inventory system, these items would be amended as part of closing entries. 2019 June 30 Profit and losse To Account Receivable e Interest Expenses To interest payable Retained Earnings To General Reserve (Dividend 15c per share=960000 share*0.15e - 144000 Less dividend already paid $25000=119000 Dri Cre 2036 20364e de 12150 de 12150 e de 1190004 de 119000 e de de de 20000 Revaluation Surplus To share Capital 20000 e co 41400 de 414004 Depreciation To Accumulated Depreciation-Building Depreciatione To Accumulated Depreciation-office equipment 19200 19200 e 'I I 15200 Depreciation To Accumulated Depreciation-delivery Vehicles 120004 Interest Revenue a To Interest Receivable 152004 de de 12000 e de Insurance Expense To Prepaid Insurance 7000 e 29374 70004 de de 29374e de Bad and doubtful debts Expense To Allowance for Doubtful debts (Being Allowance for Bad and Doubtful debts recognize) Net Sales-Sales-Sales Return=5873002 Bad debts=Net credit sales*0.5%=2937(Rounded of) te ce ce de ce tt Required: Prepare the Retained Earnings account to determine the final balance for the year ending 30 June, 2019 taking into account relevant journal entries from Part A. Retained Earnings e de e ce C Required: Prepare a detailed classified Balance Sheet for Whiteley Ltd. as at June 30, 2019 taking into account the transactions recorded in Part A. - de de de de de de WHITELEY LTD 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 Lande Buildings Accumulated Depreciation Delivery Vehicles Accumulated Depreciation Furniture and Equipment Accumulated Depreciation TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Accounts Payable Bank Overdrafte Current Tax Liability Interest Payable Othere TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Debentures TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY: Share Capitale 980 000 shares issued at $le General Reserved Revaluation Surplus Retained Earnings TOTAL EQUITY de de de ce de de de die de de 4 de de de de