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. 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 - n-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 128 200 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- $2 806 500 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. 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 15 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. Crie Dri 20366 12150 2019 June 30 Profit and losse To Account Receivable e de 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 20364e ce ce 12150 e de 1190004 119000 e de de 20000 Revaluation Surplus To share Capital ce 20000 e 41400 de 414004 Depreciation To Accumulated Depreciation-Building Depreciatione To Accumulated Depreciation-office equipment 19200 ce 19200 e '2 I 152006 Depreciation To Accumulated Depreciation-delivery Vehicles ta 120004 Interest Revenue el To Interest Receivable ee Insurance Expense To Prepaid Insurance 152004 de de 12000 e de 7000 29374 70004 de de 29374 de Bad and doubtful debts Expensee 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) de ce ce de tt 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 e INCOME Salese Less: Sales returns and allowancese Net sales Cost of sales: Beginning inventory Purchases Less: Purchases returns & allowances Freight inwards CULT de de de de de de 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 expenser Total selling and distribution expenses Administrative expenses: Administrative expenses Depreciation - office equipment Depreciation - buildings Insurance expenser Total administrative expenses Finance expenses Interest on debentures and overdraft Bad debts Total finance expenses TOTAL EXPENSES Profit before income taxe Income tax expense- LOSS de de de He le ele