Reference no: EM132473557
Accounts Receivable Schedule as at 1 July 2019:
Freedom Financial Planners 2,050.00
Peter Piper Couriers 4,500.00
Northern Logistics 3,000.00
Total 9,550.00
Accounts Payable Schedule as at 1 July 2019:
Orange Technologies 9,000.00
Song Sam Distributors 20,250.00
Total 29,250.00
Inventory Schedule as at 1 July 2019:
Inventory Item No. Cost total Cost
Orange FX7 M-Phone 15 150.00 2,250.00
Song Sam Star 10 M-Phon 12 270.00 3,240.00
Song Sam Star 50 M-Phone 10 541.00 5,410.00
Michael's Mobile Phones
Post-Closing Trial Balance
As at 1 July 2019
Account Name Debit Credit
Cash 42100
Investment Team Deposit 20700
AR 9550
Provision for doubtful debt 1350
Office Supplies 1200
Inventory 10900
Delivery van 42000
Accumulated Depreciation Van 15120
Show And Showroom 197000
Accumulated Depreciation shop 8518.88
Accnt Payable 29250
Electricity Payable 350
Int Payable loan 436.12
Int Payable 325
Bank Loan Van 87400
Capital 180700
July 1 Paid the interest owing on the loan 1 July 2019
July 1 Paid the internet account owed at 1 July 2019
July 2 Received $2,050 from Freedom Financial Planners
July 4 Sold three (3) Song Sam Star 10 M-Phones on credit to Freedom Financial Planners for $3,564 total (including GST)
July 5 Paid freight expense of $110 (including GST)
July 6 Received interest revenue from the bank of $414 (no GST on interest)
July 7 Received payment from Northern Logistics with a 2% discount applying
July 8 Paid rates of $2,400 for the year (no GST on rates)
July 8 Sold two (2) Orange FX7 M-Phones on credit to Freedom Financial Planners for $1,320 (including GST)
July 9 Purchased three (3) Song Sam Star 10 M-Phones on credit from Song Sam Distributors for $310 each (not including GST)
July 11 Paid advertising expense $121 (including GST)
July 15 Paid office supplies (prepayment) $135 (including GST)
July 15 Purchased three (3) Orange FX7 M-Phones for cash for $220 each (not including GST)
July 15 Received payment of $3,500 from Peter Piper Couriers
July 17 Pre-paid twelve months of insurance for the business $2,640 (including GST)
July 17 Sold four (4) Song Sam Star 10 M-Phones for cash of $4,752 total (including GST)
July 17 Michael Angelo withdrew cash of $1,200 from the business
July 18 Sold four (4) Orange FX7 M-Phones on credit to Peter Piper Couriers $2,640 total (including GST)
July 19 Paid the $9,000 owed to Orange Technologies at 1 July 2019
July 20 Paid the $20,250 owed to Song Sam Distributors at 1 July 2019
July 23 Purchased two (2) Song Sam Star 50 M-Phones on credit from Song Sam Distributors for $600 each (not including GST)
July 24 Sold six (6) Song Sam Star 50 M-Phones for cash of $14,282.40 total (including GST)
July 25 Received and paid the electricity expense of $620 (including GST)
July 30 Peter Piper Couriers returned one (1) Orange FX7 M-Phone that was purchased on the 18th which was included back into the inventory of the business
July 31 Paid the electricity owing at 1 July 2019
July 31 Purchased four (4) Song Sam Star 10 M-Phones on credit from Song Sam Distributors for $325 each (not including GST)
Adjustments
Question a. Calculate and record the depreciation expense for one month for the: Delivery Van using the straight line method and the Shop & Showroom using the reducing balance method (see 1.2 above)
Question b. Physical stocktake of inventory reveals that there are eight (8) Song Sam Star 50 M-Phones. Record the missing inventory as Cost of Sales
Question c. Accrued internet expense for the month is $365
Question d. Calculate and record accrued interest expense on the loan given that the interest rate is 3.18% per month
Question e. Accrued electricity expense for the month is $308
Question f. Physical stocktake of Office supplies revealed supplies on hand of $690
Question g. Calculate and record the Provision for Doubtful Debts at 20% of the outstanding balance of Accounts receivable at the 31st July
Question h. Record adjustments to prepaid insurance given half a month of insurance has been used up and needs to be expended
Required:
Question 1) Prepare General Journal entries for the transactions that occurred during the month.
Question 2) In the General Ledger , enter the starting balances for the permanent accounts.
Question 3) Prepare a Trial Balance as at the 31 July 2019 by linking from the General Ledger accounts to the Trial Balance.
Question 4) Prepare the Worksheet by copying your Trial Balance figures into Columns B and C. It is VERY IMPORTANT - copy the amounts as Values
Question 5) Record the Adjustments in the General Journal.
Question 6) Post the Adjusting Journal Entries.
Question 7) Finalise the Worksheet.
Question 8) Prepare the Financial Statements.
Question 9) Prepare the Financial Statements
Question 10) Post-Closing Trial Balance.