Solution-Indicate the account name and the amount

Indicate the account name and the amount

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Reference no: EM132984884

Question - The following events occurred during the year ended 30 June 2020 for Electrical Limited.

a) On 1 June 2020, Electrical Ltd. signed a three-month 11% per annum note payable to purchase a new equipment costing $72,000. Interest and principal are paid at maturity.

b) On 29 June 2020, Electrical Ltd. received deposit in advance of $11,000 from a construction company for completing the electrical work for a new project during the next 6 months.

c) Electricity charges of $46,000 from 24 April to 23 June are payable on 10 July.

d) Electrical's main product is backed by warranty. Sales of this product for the year totalled $445,000. The opening balance of provision for warranty claims was $12,720. During the year, Electrical's warranty expense was $38,040 and claims paid to customers totalled $30,240.

e) June sales totalled $312,000. Electrical Ltd. collected GST of 10% on this amount. This is due to be paid to the tax office by the seventh day of the following collection.

f) On 30 June 2020, Electrical Ltd. took out a loan for $130,000 from AUZ Bank. Repayments of principal are scheduled evenly over a five-year period. Interest on the loan is paid in the year it is incurred.

Required - For each item, indicate the account name and the amount to be included as a current liability on Electrical's balance sheet prepared at 30 June 2020. (show your working for your calculation for each amount).

Reference no: EM132984884

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Indicate the account name and the amount

Reference no: EM132984884

Reference no: EM132984884

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