Paper , Order, or Assignment Requirements

QUESTION 2: Balance Day Adjustments  (45 marks)

 

	Debit ($)	Credit ($)
The Whistle Fish Unadjusted Trial Balance 30 June 2016
Shop Cleaning Expense	65 400
Office Gas Expense	100
Water Expense	3 752
Shop Gas Expense	752
Motor Vehicle	45 000
Cash at Bank	190 770
Shop Furniture	72 000
Gas Expense	2 132
Sales Returns & Allowances	1 060
Interest expense	9 200
Discount Received		1 670
Electricity Expense	7400
Rupert, Capital		264 475
Accounts Receivable	650
Loan		78 550
Accumulated Depreciation – Motor Vehicle		9 000
Inventory (1 July 2015)	58 950
Rent Expense	30 256
Bookkeepers Wages Expense	41 454
Shop Staff Wages Expense	49 090
Purchases	253 000
Advertising Expense	24 700
Office Cleaning Expense	20 000
Accounts Payable		10 233
Office Supplies Expense	2 350
Rupert, Drawings	53 065
Cooking Oil Disposal Expense	12 683
Repairs and Maintenance Payable		10 700
Sales		635 031
Accumulated Depreciation – Refrigeration Equipment		32 625
Accrued Rent		2 250
Refrigeration Equipment	95 630
Discount Allowed	1 300
Insurance Expense	3 840
Totals	1 044 534	1 044 534

 

 

Rupert has emailed you the following list of account information related to the year ended 30 June 2016:

(1)       The Shop Furniture is expected to have a useful life of seven years and have a        $1 300 residual value (calculate and record the depreciation expense for the year).

(2)       The Office Supplies on hand at 30 June 2016 was $843.

(3)       The 12 month Insurance policy (policy #247786) of $3 840 was paid on February 1 2016.

(4)       The Motor Vehicle is expected to have a useful life of five years and have a zero scrap value (calculate and record the depreciation expense for the year).

(5)       $12 314 of the recorded sales represent receipts for catering at the Nutwood Music Festival which is not until the 4^th August 2016.

(6)       On 30^th June, Rupert estimated $50 of Accounts Receivable will not be collected as the amount has been outstanding for 240 days.

(7)       Staff wages payable but not recorded as at 30 June are $1 886.  Of this $848 was bookkeepers wages payable whilst the remaining amount of $1 038 was shop staff wages payable.

(8)       The bank has approved an overdraft facility for $10 000 for The Whistle Fish.

(9)       The refrigeration equipment has a useful life of 10 years with a residual value of $4,000.

REQUIRED:

 

It is now the end of the financial year and Rupert requires you to undertake the following:

1. Prepare the Balance Day Adjustment Journals for The Whistle Fish where required. Include narration (explanation) for each journal entry.                                                                                      (18 marks)

1. Post the journals from (a) above to the General Ledger provided.                          (18 marks)

1. Complete the attached Adjusted Trial Balance provided for the account balances calculated in the General Ledger from (b) above. (9 marks)

 

 

 

1. Prepare the Balance Day Adjustment Journals for The Whistle Fish where required. Include narration (explanation) for each journal entry.

 

 

Date	Details	Debit ($)	Credit ($)

 

 

 

 

 

 

 

 

 

1. Post the journals from (a) above to the General Ledger provided. All ledgers must be footed.

                       

                                                            Allowance for Doubtful Debts

Prepaid Insurance

Office Supplies

Accumulated Depreciation – Shop Furniture

Accumulated Depreciation – Motor Vehicle

			30 June	Balance	9 000

Accumulated Depreciation – Refrigeration Equipment

			30 June	Balance	32 625

Unearned Sales

Bookkeepers Wages Payable

Shop Staff Wages Payable

Sales

			30 June	Balance	635 031

Bookkeepers Wages Expense

30 June	Balance	41 454

Shop Staff Wages Expense

30 June	Balance	49 090

Depreciation – Shop Furniture

Depreciation – Motor Vehicle

Depreciation – Refrigeration Equipment

Office Supplies Expense

30 June	Balance	2 350

Insurance Expense

30 June	Balance	3 840

Doubtful Debts Expense

 

 

1. Complete the attached Adjusted Trial Balance in the proforma provided. You may need to insert additional accounts that are not currently listed.

	Debit ($)	Credit ($)
The Whistle Fish Adjusted Trial Balance 30 June 2016
Shop Cleaning Expense	65 400
Office Gas Expense	100
Water Expense	3 752
Shop Gas Expense	752
Motor Vehicle	45 000
Cash at Bank	190 770
Shop Furniture	72 000
Gas Expense	2 132
Sales Returns & Allowances	1 060
Interest expense	9 200
Discount Received		1 670
Electricity Expense	7400
Capital – The Whistle Fish		264 475
Accounts Receivable	650
Loan		78 550
Accumulated Depreciation – Motor Vehicle
Inventory (1 July 2015)	58 950
Rent Expense	30 256
Bookkeepers Wages Expense
Shop Staff Wages Expense
Purchases	253 000
Advertising Expense	24 700
Office Cleaning Expense	20 000
Accounts Payable		10 233
Office Supplies Expense
Drawings	53 065
Cooking Oil Disposal Expense	12 683
Repairs and Maintenance Payable		10 700
Sales
Accumulated Depreciation – Refrigeration Equipment
Accrued Rent		2 250
Refrigeration Equipment	95 630
Discount Allowed	1 300
Insurance Expense
Allowance for Doubtful Debts
Prepaid Insurance
Office Supplies
Accumulated Depreciation – Shop Furniture
Unearned Sales
Bookkeepers Wages Payable
Shop Staff Wages Payable
Depreciation – Shop Furniture
Depreciation – Motor Vehicle
Depreciation – Refrigeration Equipment
Doubtful Debts Expense
Totals

 

QUESTION 3: Financial Statement (18 marks)

 

The following Trial Balance for Buzz’s Toyshop has been prepared at year end by Buzz but he realises it is not in the correct order.

Buzz’s Toy Shop – TRIAL BALANCE AS AT 30 JUNE 2016

 

                                                            Debit ($)                                 Credit ($)

Shop Furniture & Fittings	25 000
Accounts Receivable	46 089
Office Electricity Expense	1 000
Accumulated Depreciation – Shop Furniture & Fittings		9 020
Office Rent Expense	3 650
Cash at Bank	48 487
Advertising Payable		9 947
Sales		545 000
Shop Electricity Expense	568
Purchases	386 210
Buzz, Capital		44 810
Depreciation Expense – Shop Furniture & Fittings	3 550
Interest received		2 310
Freight Inwards	2 820
Shop Rent Expense	25 650
Accounts Payable		10 597
Discount Allowed	3 725
Inventory (1 July 2015)	20 960
Shop Salaries Expense	28 300
Loan Payable		33 600
Allowance for Doubtful Debts		1 000
Fuel Expense – Delivery Van	3 200
Prepaid Advertising	1 540
Interest Payable		620
Advertising Expense	6 547
Purchase returns and allowances		5 421
Sales Equipment	14 400
Interest Expense	470
Doubtful Debts Expense	1 000
Buzz, Drawings	18 500
Insurance Expense	1 900
Sales Returns & Allowances	8 630
Discount Received		3 171
Office Salaries Expense	13 300

**The loan is payable in equal amounts over 48 months**

**A physical stocktake of inventory at 30th June 2016 revealed $46 750 on hand.

**Insurance was paid to cover the office equipment.

 

REQUIRED:

Prepare a fully classified Income Statement using the Trial Balance provided for the