Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your supervisor has requested your assistance with the preparation & drafting of the Financial Reports of Suntory Ltd for the period ending 30 June, 2020.

image text in transcribed
image text in transcribed
image text in transcribed
Your supervisor has requested your assistance with the preparation & drafting of the Financial Reports of Suntory Ltd for the period ending 30 June, 2020. The company uses periodic inventory system. All sales of goods of Suntory Ltd. are on a credit basis. The Unadjusted Trial Balance of Suntory Ltd., as at 30 June 2020 shows the following ledger account balances: SUNTORY LTD Unadjusted Trial Balance as at 30 June 2020 Account Debit Credite $1 340 000 10 000 92 000- 40 000 220 000 400 000 $204 000- 800 000 140 000 100 000 109 9004 2 000 Share capital First Call Retained earings Accounts payable Bank overdraft (current) Mortgage payable Land Buildings Accumulated depreciation - buildings Motor Vehicles Accounts receivable Provision for doubtful debts Inventory (1 July 2019) Investments Sales Interest revenue Sales returns & allowances Purchases Freight inwards Salaries Directors Fees Commission expense Interest expense Delivery expense General expenses 300 000- 800 000 504 000 35 000 5 000 261 000 3 000 93 800 6 000- 2 000 20 000 4 000- 54 300 $2 773 000 $2 773 000 PARTA Your first task is to prepare General Journal entries using the template provided to record the following required adjustments at 30 June, 2020; Suntory Ltd transactions during 2019/2020: Write off bad debts for the period ending 30 June, 2020 SI 925 Record income tax expense and current tax liability of S18 000. Declare a final dividend, 530 000. No ratification of this dividend is needed. An amount of $20 000 is to be transferred to a general reserve from retained earnings.- . L Suntory Ltd's end of financial year adjustments: Provide for annual depreciation charges at 5% p.a. on cost of buildings for the whole year. Motor vehicles were purchased on March 1, 2020. Provide for the partial year depreciation charge using the following information; 1. Cost $100 000 2. Residual value $10 000 3. Useful life 5 years 4. Sum of the years digits depreciation method is to be used. Record the estimated Bad debts expense of 0.5% for the year ending 30 June, 2020 based on the percentage of net credit sales method. (NB; All Suntory Ltd. sales are on a credit basis) PART A- Adjusting entries 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. . GENERAL JOURNAL SUNTORY LTD DR CR 2020 June 30e de ee de de de tot de le He 40 se ce L PART Be Your next task is to prepare a detailed Classified Income Statement for the period ending 30 June, 2020 with reference to the General Journal adjustments in Part A. SUNTORY LTD Income Statement- for the year ended 30 June 2020 e de de de e de le le titititititi ttt

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing a business risk appraoch

Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston

6th Edition

9780324645095, 324645090, 978-0324375589

More Books

Students also viewed these Accounting questions